Cellular4.02.2013

MTN vs Cell C’s free battle

MTN small

The Advertising Standards Authority of South Africa (ASA) has ruled that MTN’s advertising claiming to be the only provider to offer free minutes on contract is misleading.

An MTN print advertisement that appeared in the Sunday Times on 11 November 2012 stated “MTN TopUp, the only contract that gives you Mahala.”

Cell C took exception to this claim, and lodged a complaint at the ASA. Cell C argued that:

  • MTN’s “Mahala” offer is subject to several limitations;
  • MTN Top Up is not the only contract that gives certain “free” calls or offers. (“Mahala” is an ordinary word meaning “free”, which is commonly used in South African slang).

Cell C provided the ASA with advertisements which showed that Vodacom and 8ta also offer free minutes on some of their contract products – substantiating their argument.

Webber Wentzel Attorneys, on behalf of MTN, hit back at Cell C’s ASA complaint, arguing that:

  • The ASA should not give any credence to Cell C’s submission that there are countless other examples of cell phone packages and contracts with free aspects, as none of these examples were attached to the complaint;
  • MTN has not received a complaint from either 8ta or Vodacom, whose advertisements were attached to the complaint. It therefore appears that Cell C is deliberately targeting MTN and its advertisements and that the complaint was brought in bad faith;
  • The word “Mahala” in the advertisement is used as a reference to MTN’s “Mahala” offerings and not in the ordinary sense [hence free].
MTN Mahala ad

More recent MTN Mahala ad

The ASA was not convinced by MTN’s argument. The advertising authority said that it is just as likely that consumers would understand the word “Mahala” to have its ordinary meaning, which is “free”.

The ASA found that the advertising line “MTN TopUp, the only contract that gives you Mahala” is misleading by ambiguity.

MTN was ordered to withdraw the claim, and it may not be used again in its current format in future.

More MTN and Cell C articles

The true cost of an off-net mobile call

Report damns mobile operators’ price hike claims

Cheaper voice rates ripe for the picking in SA

Unlimited voice calls at a flat rate from 8ta

Cell C LCR product a ‘game changer’

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