MTN rapped over the knuckles for misleading info on upgrades in advert
Advertising Standards Board sanctions cellphone giant, ordering it to clarify its communications with clients
Cellphone giant MTN has been found guilty of sending misleading advertising to a customer, and ordered by the Advertising Regulatory Board to correct its advertising pursuits in future.
The ruling, made earlier this month, stated that an MTN client had laid a complaint against the cellphone service provider for informing him that he was due for an upgrade, only to try to bill him for early upgrade penalty charges when he went to get his new phone.
Client Edward Richardson submitted that he had received an SMS from MTN on March 1 informing him that he qualified for an upgrade, with no mention of any additional costs. Only when he went to the store was he informed that he would be charged penalty fees for an early upgrade.
On March 4 Richardson laid his complaint with the ARB, which then contacted MTN which asked for the customer’s details to investigate the matter.
The advertiser is instructed to ensure that its communications to its customers around upgrades must be sent when the customer is actually due for an upgrade, or it must indicate that early upgrades are subject to penalties.
Advertising Standards Board
The ARB said that MTN then failed to respond any further, despite several follow-ups made by it.
The advert, sent directly to the Richardson, stated: “Dear MTN client, your upgrade is due this month” and made no mention of any costs or penalties involved.
“The complainant can therefore not be faulted for believing he was due for an upgrade in March,” the ruling stated.
The ARB found that according to MTN terms and conditions as detailed on its website, early upgrades are subject to penalty fees to cover the costs of the remainder of the contract period.
The ARB stated that it was satisfied that, in terms of a previous dealing with MTN relating to a different matter, MTN had respect for the ARB and considered itself bound by its decisions.
“The advertiser is instructed to ensure that its communications to its customers around upgrades must either be sent when the customer is actually due for an upgrade, or it must indicate that early upgrades are subject to penalties,” stated the final sanction.
“MTN has noted the ruling by the ARB and is reworking the messaging to ensure that it is as clear as possible when communicating with its customers,” said Jacqui O’Sullivan, corporate affairs executive at MTN SA.
