A recent MTN print advertisement promoted various contract options from the company, showing different types of handsets that are available for free on different contracts. All offers reflected a total cost payable in a large, bold font under the heading “TOTAL COST”. <\/p>\n
A disclaimer at the bottom of each page said: “Itemised Billing at R19.00 per month and Calling Line Identity (CLI) at R8.00 pm are mandatory on all contracts shown except the Nokia 2630, Samsung E250, Sony Ericsson W810i and Samsung M300 offers, where they are optional.”<\/p>\n
This advertisement did not go down well with one consumer who complained to the Advertising Standards Authority of South Africa (ASA) that the advertisement was misleading.<\/p>\n
According to Pierre Nye he was charged for itemised billing and calling line identity, which inflated the actual total cost payable beyond that indicated in the advertisement.<\/p>\n
MTN argued that the terms and conditions in the advertisement clearly state that itemised billing and calling line identity (CLI) were mandatory on all contracts shown except, amongst others, the Nokia 2630 and the Samsung E250 offers where they were optional.<\/p>\n
“The above sentence, read together with the advertisement as a whole, means that the total amount payable in respect of the two phones is R49, except where the customer would like itemised billing and CLI included in his or her package. If the customer opts to include these he will be charged. Accordingly, the advertisement makes it clear that the total cost in respect of the two phones excludes CLI and itemised billing,” said MTN.<\/p>\n
Notwithstanding its argument, in order to avoid future similar complaints, MTN said that it would amend its terms and conditions to include the following wording: “Itemised billing at R19.00 and CLI at R8.00 are optional additional charges on [handset name]”.<\/p>\n
The ASA was not convinced, saying that MTN’s undertaking to amend their terms and conditions did not adequately address the complainants’ concerns.<\/p>\n
The ASA upheld the complaint and ordered MTN to withdraw the advertisement with immediate effect and not to use it again in future.<\/p>\n