The Commerce Commission has laid 10 charges against Vodafone, claiming it overcharged customers who cancelled accounts.
It says that, for roughly five years until the end of 2016, people who terminated accounts part way through a month were charged for the entire next month.
Vodafone says it's disappointed by the legal action.
It claims the overcharging was unintentional and involved some human error. It's gone to some length to put things right when it found out.
It says it found all affected customers, and says none of the money was kept.
Vodafone refunded $55,000 to customers, and donated the rest, which was unclaimed, to charity.
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