MTN challenges Vodacom Summer specials
MTN – through Moore Attorneys – recently lodged a competitor complaint against Vodacom’s Summer Specials booklet with the Advertising Standards Authority of South Africa (ASA).
According to MTN the Vodacom booklet contains several contract offers where two different monthly costs are stated in blue and red, respectively.
MTN complaint
MTN submitted that the booklet states: “Subscription from R135 PM x 24 months” in blue lettering. Next to this, in red, it states “YOU PAY R144.50 PM x 24 months Price Includes: CLIP @ R9.50”.
According to MTN this is likely to mislead the consumer into thinking that the offer can be had for R135 per month, when in actual fact the consumer will always pay R144.50 per month.
It was further submitted that the offers for prepaid cellular phones do not prominently state the mandatory cost of a 4U Starter Pack, while the cash price of the phone is stated in large, bold letters. In addition, the mandatory SIM and connection costs for all offers are stated in small letters at the bottom of the page, and are therefore not prominently displayed.
Vodacom responds
Vodacom hit back saying that the offers which state the monthly subscription in blue and the total cost in red should be judged as a whole. “Consumers are not likely to be misled, because the breakdown of the costs and the amount payable by a consumer is clearly stated,” said Vodacom.
Vodacom confirmed that offers giving only the total monthly cost with no reference to the CLIP are accurate, ‘because CLIP at R9.50 is included in the monthly cost shown.’
Vodacom further undertook to amend its advertising regarding the prepaid cellular phone offers so that the cost of the 4U Starter Pack is at least half that of the cash price of a phone.
Vodacom was silent on the prominence of the reference to the mandatory once-off “SIM & Connection” fee.
Ruling
The ASA found in favour of Vodacom’s Top Up 135 contract advertising, saying that while the subscription cost is stated in blue, the total payable monthly cost is stated in red. The ASA said that this stands out from the rest of the wording.
The Advertising Directorate further found that it clearly states “YOU PAY R144.50 PM”. Given that it also states “Price includes: CLIP @ R9.50”, it is clear that the consumer will pay the higher amount, because it is the total of the subscription fee plus CLIP.
This part of the complaint was subsequently dismissed.
The ASA also ruled in favour of Vodacom regarding their Business CALL contracts and Weekend EVERYDAY contracts as the price stated did indeed include a mandatory cost of R9.50 for CLIP, something which MTN disputed.
Vodacom however buckled down on their prepaid offers where the cost of a 4U Starter Pack was not reflected prominently, and agreed to amend its advertising accordingly.
The ASA further ruled in favour of MTN’s complaint that the once-off SIM and Connection fee of R202.00 is a mandatory cost that it is only displayed in small letters at the bottom of some pages.
According to the ruling it is not sufficient for a disclaimer to be placed in small print at the bottom of a page where it is not in sufficient proximity, or prominence, to the quoted price.
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