Vodafone apologises to misled customers

Vodafone is apologising after complaints of misleading "Red zone" advertisements and overcharging of customers were brought to light.

The company's website and staff quoted $10-a-month discounts to some broadband customers who were then charged full price.

Vodafone has now offered an apology, saying the "system error" on its website will be fixed by Monday and customer service and retail staff will be briefed on the situation.

"We would like to apologise to all the customers affected," said Vodafone spokeswoman Michelle Baguley.

"Those customers who signed up for the Red Network pricing will have it honoured.

"All our customer service staff will be informed and our retail staff briefed on the situation and will be able to advise customers on whether they are in the red zone or not."

Many affected customers told nzherald.co.nz they had been offered the discount but charged full price, and had poor response from the company when they complained.

The Commerce Commission said it had received a complaint against Vodafone about a similar issue and its fair trading branch was following it up.

Shonal Sumeet told nzherald.co.nz he had been overcharged, and, when he brought it up with Vodafone, was told it would take a few years to be moved on to the network. This was after Vodafone's website told him he was already on it.

Mary Brydone said she was also told she would get the discount but did not, and she had yet to hear back from the company despite writing to them two weeks ago. Earlier, even a call centre staff had told her it seemed like "misleading advertising", she said.

Chris Ryder, who experienced the problem after signing up at Christmas, said it seemed like "false advertising".

Vodafone has pointed to roadside cabinets built by Telecom upgrading its network as the cause of the confusion.

One customer, Paul Schupbach, said he had specifically asked Vodafone sales staff about the roadside cabinets but was still reassured he would get the discount.

"In my case I even told the sales staff about the cabinet, and queried how I would get Red Zone. EVERY person I spoke to in their sales team told me I would get a Red Zone plan. This was not an isolated staff error. I spoke to them on a daily basis (as they always left so many questions unanswered, and systematically failed to carry out all my instructions). So this failure to advise of the consequences of cabinetisation is not an isolated issue. It is completely systemic," he wrote to nzherald.co.nz.

A commission spokeswoman said customers who had problems relating to the Fair Trading Act were advised to bring their complaints to the commission.

Vodafone's Ms Baguley said the one complaint lodged with the Commerce Commission was by a misinformed customer in Christchurch - where the offer was not available - and Vodafone had had no other issues regarding the discount with the commission.

Telecom spokesman Mark Watts said Telecom had been upgrading its network and did not shut down a single exchange. It had instead been instead improving existing ones or installing roadside cabinets, and Vodafone's problems were "entirely" its own, Mr Watts said.