Directory Solutions, which has set itself up as a competitor to Telkom's directory services arm Trudon, has denied the fee it charges is for nothing.
The company says its fees are not “merely for submitting the entries, but also for the work done prior to submission”.
Last week, ITWeb revealed the company sends out unsolicited faxes that appear to be invoices requesting payment for an advertisement that Directory Solutions has laid out. The advertisements are intended to appear in Trudon's telephone directories, but need to be submitted to Trudon by the advertiser, not Directory Solutions.
Consumers who sign up for Directory Solutions' services not only have to pay the Port Elizabeth-based company, but also have to pay Trudon for the entries. Trudon publishes the white and yellow pages on behalf of Telkom, and is 64.9% owned by the fixed-line operator.
Directory Solutions has been called into question for appearing to add value for a service that businesses could do themselves, at a fraction of the price. However, Directory Solutions argues that it performs a valuable service by typing up proofs and making amendments.
“Apart from ensuring that the entries are correctly printed prior to submitting them for publication, Directory Solutions also explain[s] the many different layouts available to the clients in order for them to make an informed decision about their entries,” says Directory Solutions.
The company claims that clients are “often surprised at the options available that should have been disclosed by Trudon, but never were”. It explains that its fee is for these services, and Trudon's fee is for a product. “Comparing these costs is like comparing apples with oranges,” says the Port Elizabeth company.
Back to court
The legal wrangle between the two companies has been in and out of court several times over the past seven years. The most recent legal action was when a complaint by Directory Solutions ended up at the competition authorities.
Directory Solutions is now set to appeal the Competition Appeal Court decision that reversed a Competition Tribunal order, forcing Trudon to publish Directory Solutions' submissions without an upfront payment.
The Competition Commission is currently investigating a complaint, by Directory Solutions, that Trudon has abused its dominance in the sector. Directory Solutions says if the commission does not refer the matter to the Tribunal, it will take it up with the higher authority itself.
“Directory Solutions have [sic] received many complaints from customers in regard to Trudon's business practices. Once they are aware of Trudon's lack of proper service, they are grateful for the competition created by us,” the company claims.
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