ZB ZB
Live now
Start time
Playing for
End time
Listen live
Listen to NAME OF STATION
Up next
Listen live on
ZB

Watchdog lays 11 charges against Spark

Author
NZ Herald,
Publish Date
Mon, 9 Jul 2018, 11:18AM
Spark is facing 11 charges from the Commerce Commission for allegedly misleading customers. Photo \ Getty Images
Spark is facing 11 charges from the Commerce Commission for allegedly misleading customers. Photo \ Getty Images

Watchdog lays 11 charges against Spark

Author
NZ Herald,
Publish Date
Mon, 9 Jul 2018, 11:18AM

New Zealand's Competition watchdog has filed 11 charges against Spark, alleging the telco misled customers.

The charges were filed in Auckland District Court by the Commerce Commission under the Fair Trading Act and cover the period 2 June 2014 to 7 December 2017.

The Commission says the charges arose from the following three issues:

• Spark overcharged customers for broadband data when a fault in Spark's broadband network misrecorded customer data usage.

• Spark sent letters offering new customers a $100 account credit for subscribing to a particular broadband plan but failed to mention the offer could only be redeemed by phoning Spark. The offers allegedly created the impression that customers signing up online would receive the credit, when they would not.

• From 2 June 2014, Spark's terms and conditions said charges would stop 30 days after the customer gave notice to terminate their contract. However, the Commission alleges that the customer's final bill included charges for the entire next monthly billing period regardless of when the Spark service stopped.

Because the case is before the court, the Commission would not comment any further on the details.

Spark sent out a statement this morning saying it has already applied credits to the accounts of all impacted customers and, for former customers, has made extensive efforts to return all money owed so they receive the benefit of their credit.

While Spark has already refunded many of these former customers over the past 12 months, it has been seeking to reach more of them as part of its "Make Sure You Get What's Yours" consumer campaign launched in May 2018. Through this campaign, Spark has so far returned over $1.1 million to customers in credits owing.

"These were all system-based errors caused by genuine mistakes with no malicious intent involved on the part of Spark. That being said, we are deeply disappointed that these issues have affected our customers," said Spark's managing director, Simon Moutter.

Given all the steps Spark has taken to rectify the matters, Moutter said he was disappointed in the Commission's decision to file legal action.

"Our preference has consistently been to settle these matters and avoid court proceedings," Moutter said.

"To this end we have held extensive discussions with the Commerce Commission, including our suggestion that we make a settlement payment (possibly in the form of further charitable donations) to acknowledge our errors."

Spark said it would review the Commerce Commission's proceedings and has yet to determine the position it will take in response.

Take your Radio, Podcasts and Music with you