Vodafone NZ stung with $960,000 fine

Vodafone New Zealand has been fined $960,000 for misleading advertising under the Fair Trading Act.

The Commerce Commission issued the penalty at Auckland District Court today over 21 charges between October 2006 and April 2008.

Regarding the extent of the coverage of its wireless broadband network, branded as “broadband everywhere” during marketing, Vodafone were found in breach of advertising rules.

Charges also covered the availability of a $10 free airtime credit for buyers of Vodafone’s “Super-Prepay” pack between May 2007 and September 2008 – while disputing the size of the company’s claims about the size of its mobile phone of 3G mobile network.

"These were significant matters and matters that are important to consumers," says Stuart Wallace, Commerce Commission competition manager to APNZ.

"It is important that telecommunications companies do not mislead consumers and that they get their marketing messages accurate.”

The news follows this morning’s decision to delay Vodafone’s proposed acquisition of TelstraClear from Telstra.

The regulator was expected to decide on the $840m deal before the weekend but has since delayed the deadline until October 23.

Vodafone issued a statement following the fine saying the company took the charges seriously.

"In 2006 and 2008, there was a huge amount happening in the world of technology - the mobile internet was emerging, mobile networks were speeding up and customers were really getting a handle on the benefits of being mobile,” Greg Campbell, Vodafone’s marketing director.

"In our genuine attempts to communicate these benefits, we accept that we got some things wrong.”