Commerce Commission warns Spark for misleading customers

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Spark has been warned by the Commerce Commission for likely breaching the law - in the regulator's view - when it notified customers of a broadband price rise.

The warning follows Spark emails in August and September 2018, notifying its contract copper broadband customers about a $5 a month price rise

Spark's contractual terms and conditions stated that it would not change the monthly charge for in-contract customers without either gaining the customers' consent or giving them the option to cancel their contract without early termination fees.

However, when Spark notified customers of the price rise on its website and in email communications, the telco focused solely on the $5 a month price increase and did not explain that if customers did not consent to the price rise they had the right to terminate their contract without penalty.

Commissioner Anna Rawlings says in the Commission's view, Spark has likely breached the Fair Trading Act by making false or misleading representations about the existence or effect of its customers' rights when it notified them of the price rise.

A spokeswoman for Spark said, "Following a Commerce Commission enquiry, we moved quickly to update the information on our website, and also sent additional communications to affected customers letting them know about their right to terminate their plan without the application of early termination fees.

"We accept that our communication could have been clearer in this case, which is why we moved quickly to rectify the situation and clarify with customers the option of terminating their plan."

Last month, Spark was fined more than half a million dollars for misleading customers in a separate incident relating to a $100 credit.

Earlier this year, Vodafone NZ drew flak for a $3 month price imposed across all of its broadband plans.

The telco said it was passing on accumulated price rises from wholesaler Chorus.

Consumer NZ said prices should not be increased during a fixed-term contract.