Vodacom has agreed to the R1-million fine imposed by the National Consumer Tribunal due to disputes regarding its 75% contract cancellation fee policy, found to be in violation of the Consumer Protection Act (CPA).

TechCentral reports the company expressed its intention to abide by the tribunal’s decision and to maintain cooperation with the National Consumer Commission in addressing future customer-related issues.

The fine, issued as part of a ruling on October 13th, resulted from the National Consumer Commission’s investigation into 21 complaints against Vodacom, South Africa’s biggest telecommunications company.

These complaints centered around Vodacom’s contract cancellation policy and the treatment of customers seeking to terminate their contracts. All of the complaints were related to the 2021 and 2022 financial years.

The tribunal’s ruling noted that some complaints involved delays in canceling contracts upon customer requests, leading to customers being charged for periods after requesting cancellation.

Although the Consumer Commission initially sought a larger fine of R20 million and requested refunds for specific customers, the tribunal imposed a R1-million penalty in line with the CPA.

The CPA limits fines to 10% of the respondent’s (Vodacom’s) turnover or a maximum of R1 million. The order for refunds was not granted, although Vodacom indicated that some customers had already received refunds.

A Vodacom spokeswoman told TechCentral the company took steps to reimburse customers affected by the previous policy even before the tribunal’s ruling.

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