SA's second-largest cellular operator, MTN, says the National Consumer Commission (NCC) acted unlawfully by issuing a compliance notice against the wrong entity.
The operator was this morning arguing before the National Consumer Tribunal as it seeks to have a notice overturned.
Last August, the NCC issued a notice against mobile operators informing them the terms and conditions contained in consumer contracts did not comply with the provisions of the Consumer Protection Act. The NCC was set up to ensure compliance with the recently-enacted law.
However, MTN's legal counsel, advocate Alfred Cockrell, said the NCC issued the notice to the wrong legal entity. He noted the commission should have sent it to MTN Service Provider, as that is the company that enters into contracts with consumers, and not MTN.
The case is the first to be heard before the tribunal since the CPA came into full effect last April. The Act is a wide-ranging law that seeks to protect consumers.
Cockrell said the notice also relates to the wrong consumer agreement as MTN had amended the terms and conditions, to the NCC's satisfaction, before the compliance notice was issued. “None of that happened behind the back of the commission.”
In addition, Cockrell argued, the commission's investigation into the telecoms sector was outside the scope of its authority as it was not mandated by the Act. He said the notice was an “exercise in redundancy” and is “unlawful”.
MTN approached the tribunal to request that it sets aside the compliance notice as it is “unlawful”. Cockrell said the notice is an “unlawful administrative act”.
Advocate Rusty Mogagabe, acting on behalf of the NCC, will respond to Cockrell's arguments after the lunch break. He said, during opening arguments, that the commission acts to protect consumers and the matter should be viewed in that light.
Cell C's date with the tribunal has been set for 20 March, while the Vodacom hearing will be held on 27 January.
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