The National Consumer Tribunal has delivered a blow to telecommunications giant Vodacom, imposing a R1 million fine in response to the company’s controversial demand for 75 percent payment from customers attempting to terminate fixed-term contracts prematurely.
The ruling comes as a rebuke to Vodacom’s business practices, highlighting the company’s violation of consumer rights.
National Consumer Commissioner Prudence Moilwa underscored the need for a more substantial punitive measure imposed on Vodacom.
Moilwa emphasised the significance of imposing a penalty reflective of ten percent of the company’s annual turnover, a proposition that the Tribunal dismissed in favour of the present fine.
“We did advocate for a more significant penalty, equivalent to ten percent of their annual turnover. However, the Tribunal arrived at a different conclusion. While the imposed fine does not fully align with our recommendation, the declaration of Vodacom’s conduct as prohibited serves as a crucial victory, sending a clear message to all telecommunication operators that such unscrupulous practices will not be tolerated,” affirmed Moilwa.
National Consumer Commission welcomes R1 million fine imposed on Vodacom:
