Price increases during fixed term contracts

J

JustinB

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Hi all

2 of the companies I have contracts with (Netstar and Cell C) have increased their prices during the 24 month contracts I have with them.

These increases are "marginal" - ±6% for Netstar and ±8% for Cell C - and both companies tell me they reserved the right to price increases in their T&Cs.

I understand this - but also have a fundamental issue with it. In both cases, I can cancel the contract, and will be liable for the outstanding balance of the bundled devices, which arguably are inflated retail prices from the start.

What stops companies exploiting this to their own benefit, and how does the CPA protect me from this?
 
After some more thinking. I consider this bait marketing.

"Get this service for Rx for 24 months" - then increasing the price seems exactly misleading the consumer.
 
This is exactly what should be in favour of the consumer....the deal was advertised at "Rx for 24 months" not for "some of the months"!
 
It would appear that their right to increase tariffs was cleverly, and deviously hidden within the fine print of the contract. The only thing that was fixed was the term, i.e 24 months. They will merely claim that you entered into the contract with all the info at your disposal, and hence with full knowledge that they reserved the right to adjust the price initially contracted. Sucks, and now showing these fkers true colours. I was also caught out with VODASCUM, having failed to ever read the fine print. :mad:
 
Sean008 said:
It would appear that their right to increase tariffs was cleverly, and deviously hidden within the fine print of the contract. The only thing that was fixed was the term, i.e 24 months. They will merely claim that you entered into the contract with all the info at your disposal, and hence with full knowledge that they reserved the right to adjust the price initially contracted. Sucks, and now showing these fkers true colours. I was also caught out with VODASCUM, having failed to ever read the fine print. :mad:
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I did not see "that" fine print. Maybe it is so hidden only they know about it.

I cannot remember that they disclosed anything about them changing subscription fees inside the contract time, when signing the contract. All I know is that if you sign for package X you pay RXX and no option to go cheaper when they have a promotion for that package.

Guess I am stuck until next year when my contract expire.
 
5.8. The charges levied by Vodacom may vary from time to time and Vodacom shall provide you with at least 20 (twenty) business days notice of such variations before they take effect. You shall be bound to pay such varied charges with effect from the date of publication thereof by either Vodacom and/or Vodacom unless you exercise your right of termination as provided for in this Agreement.
 
alexjay said:
5.8. The charges levied by Vodacom may vary from time to time and Vodacom shall provide you with at least 20 (twenty) business days notice of such variations before they take effect. You shall be bound to pay such varied charges with effect from the date of publication thereof by either Vodacom and/or Vodacom unless you exercise your right of termination as provided for in this Agreement.
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I had a look at the documents I signed and none where the T&C's. The terms and conditions are somewhere on their website, I was not told/explained this when I signed for the contract. Also what are the terms of termination? Does this clause allow them do just make up any price and force people bound by this contract to pay them??

I can understand if they increase the price of calls, but "levies" shouldn't be the actual subscription a month! It also seems according to this clause they can do it as often as they want!

EDIT: I also just had a look at Vodacom's Deal Sheet. They still advertise the old prices until 6 April, does that mean that people who sign up up on the 5th or 6th will not be affected by the price increase as they will not have had the 20 business day notice? I can promise you that Vodacom staff will not tell new clients the prices will go up after their 1st month!
 
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How do price increases/decreases prepaid tariffs compare? I've said this before, I don't really mind the R120 p/a increase given the current power supply issues but it should be applied across all subscriber types.
 
Fudzy said:
How do price increases/decreases prepaid tariffs compare? I've said this before, I don't really mind the R120 p/a increase given the current power supply issues but it should be applied across all subscriber types.
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Prepaid users like me can drop them like a sack of excrement, while contract holders are held by the short and curlies it seems...

Point being, they wont increase prices easily.
 
Fudzy said:
How do price increases/decreases prepaid tariffs compare? I've said this before, I don't really mind the R120 p/a increase given the current power supply issues but it should be applied across all subscriber types.
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Prepaid is the way to go, they get all sorts of promotions that make it cheaper, and they can chop and change providers. I'm done with cell c in June,, then I'm going vodacom prepaid.
 
So I have a right to terminate. Wonder what the cost and implications would be...
 
I will be eligible to "upgrade" in 2 months time. I emailed them yesterday asking about the legality of increasing, and also stated that I will not renew if this is the way they treat a contract. I was with Nashua Mobile for 16 years and never had an increase in contract time. I had no choice in my contract being moved over to Vodacom, but this is not on. It is not the money, but the principal. I have no loyalty towards them and will cancel. Vodascum.
 
So basically the CPA means nothing if the providers put it in their terms and conditions? Which by the way, I was not given when I signed for the contract. I was only given the subscriber contract form to fill in!
 
Aquiva said:
So basically the CPA means nothing if the providers put it in their terms and conditions? Which by the way, I was not given when I signed for the contract. I was only given the subscriber contract form to fill in!
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Seems to be the case unfortunately. With the number of subscribers, they would never be able to sneak it past as somebody would take them on if it were against the CPA.

Luckily I am due for upgrade in May, I will be downgrading to prepaid though in July.
 
alexjay said:
5.8. The charges levied by Vodacom may vary from time to time and Vodacom shall provide you with at least 20 (twenty) business days notice of such variations before they take effect. You shall be bound to pay such varied charges with effect from the date of publication thereof by either Vodacom and/or Vodacom unless you exercise your right of termination as provided for in this Agreement.
Click to expand...

Well then exercise your right to terminate. Although I'm sure their legal team won't allow it
I sincerely hope that peoe start voting with their wallets. They are no better than a government department
 
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