The National Consumer Commission (NCC) will launch a full-scale investigation into alleged unfair cost hikes by mobile network service providers.
The NCC says the planned investigation follows an inquiry into complaints from consumers who experienced call and data increases despite being on pre-determined mobile contracts.
"The proposed increases were reported to also affect consumers who were already in the midst of cellular contracts, and who had entered into fixed-term agreements," according to an NCC statement.
To date, the NCC has received 32 complaints from consumers who felt the network service providers would be acting unfairly if they increased the tariffs of existing contract holders. Thirty-one of these were against Vodacom and one against Cell C.
"In determining whether to investigate a matter, the NCC does not base its decision on the number of complaints it receives, but rather on the impact the matter is likely to have on consumers at large."
The NCC says the Consumer Protection Act alludes to the fact that a contract term of a consumer agreement would be presumed unfair if it allows the supplier to increase an agreed price in a concluded agreement, without giving the consumer the right to terminate such an agreement.
The NCC has informed the Independent Communications Authority of South Africa, MTN, Neotel, Vodacom and Cell C of the formal investigation, which it aims to conclude over the next 12 months. It has also requested the contract terms and conditions of all investigated parties.
In the 2014/2015 financial year, cellphone-related complaints ranked third highest among the complaints the NCC received, at a total of 946 complaints.
An analysis of these complaints indicate 25% of these related to contract cancellation, followed by poor service delivery at 24% and defective handsets at 21%.
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