Vodafone faces 27 ComCom charges

Vodafone is facing charges in relation to its promotion of its FibreX offering. Photo/File.

The Commerce Commission has laid 27 charges under the Fair Trading Act against Vodafone for false and misleading conduct in relation to its FibreX broadband service.

The charges, filed in the Auckland District Court, relate to conduct in Wellington, Christchurch and Kapiti between October 26 2016 and March 28 2018.

The Commission alleges that by naming its broadband service "FibreX", along with its advertising of FibreX on billboards, radio, in-store, online and in direct-marketing, Vodafone misled consumers into thinking that FibreX was a full fibre-optic broadband service, comparable to that offered by Chorus, when it is not.

The Commission also alleges that Vodafone's website misled consumers about the options of broadband services (including full fibre-optic broadband) available at their addresses.

Vodafone has expressed disappointment at the Commerce Commission's charges.

"We disagree with the charges laid by the Commission and welcome the opportunity to defend the naming and marketing of FibreX and reinforce the benefits of this service," the telco said in a statement.

"We had a vision to provide consumers with an alternative way to receive super-fast reliable broadband that would also be more affordable and offer a better installation experience. We delivered that through a significant investment in our own hybrid fibre coaxial (HFC) network. "

The company said its investment in this infrastructure is good for New Zealand and offers consumers more choice.

"We are surprised the Commission does not appear to welcome that," Vodafone said.

Vodafone countered claims that its advertising misled consumers.

"In 2017, the Advertising Standards Authority looked into our advertising of FibreX and ruled it was not misleading," Vodafone said.

"They noted that consumers are more interested in the speed than the technology behind their internet service, and that FibreX performs to a comparable standard to other fibre access technologies."

Vodafone said its service offers an alternative to a major customer pain point, which often comes in the shape of consumers having to wait for installation.

Vodafone said it would challenge the charges made by the Commerce Commission.

This matter will be called in the Auckland District Court for the first time on May 22 2018.