The South African National Consumer Union (SANCU) says that "by far" the majority of mobile service provider complaints it received last year were from MTN customers.
This is according to SANCU vice-chairperson, Ina Wilken, who told ITWeb that of the over 500 total complaints the union received in 2015, from clients of all operators, 90% concerned data billing, with complaints continuing to come in.
"The majority of complaints were and still are data bundling and all of a sudden excessive bills - for example where a customer used to pay a debit order of R99, it increased to R3 800," explains Wilken.
She says the highest bill complaint so far was from a "capped account" which was supposed to be for R500 but the bill received was for R65 951.83. She did not specify which network the customer was on and says other 'bill shock' amounts received from consumers ranged from R39 000 to R3 485.
Wilken says SANCU referred more than 300 of the complaints received in 2015 to the National Consumer Commission (NCC). The NCC is the chief regulator of consumer-business interaction in South Africa and was created by government under the umbrella of the Department of Trade and Industry, "to ensure economic welfare of consumers".
Better information
SANCU says it is urging all mobile service providers to make provision for a warning on all boxes of new cellphones, "informing consumers that unless they deactivate the automatic downloading of data and updates on their cellphones, they may incur astronomical charges for out of bundle data on their accounts".
Wilken says this motivation from SANCU was sent through to the different cellphone companies and providers of cellphones at the end of 2014.
"We have had no confirmation that this has been implemented and will once again engage with the Independent Communications Authority of South Africa (ICASA)."
She says ICASA asked for comments on the code of conduct for "end-user and subscriber service charter" regulations and SANCU submitted a response in December, which included comments on licensing at point of sale, minimum deposits and out of bundle rates, among others.
"All these issues have been raised and we will ask ICASA to implement these regulations sooner than later," she says.
Smartphone troubles
Wilken says many consumers, especially those who purchase or upgrade to smartphones for the first time, are unaware their phones can use data without their knowledge, which they will be responsible to pay for.
She says a trend SANCU noticed was a number of consumers complaining about costs incurred by the new iOS 9 feature WiFi Assist. This feature detects when the iPhone is experiencing weak or slow WiFi signal and automatically switches to the user's data, leading to depleted bundles or high out of bundle bills.
"The next shock a customer received was when she queried her excessive bill and was told the cellphone company automatically loads a balance a customer can exceed, without telling the customer, which then leads to an account which comes as a huge shock. It seems the cellphone companies decide on the limit, which you as the customer are unaware of."
Wilken says the sheer volume of complaints received is clear evidence consumers are either not informed properly when purchasing or upgrading their cellphones, or don't understand what can happen should they persist in using their smartphones after receiving an SMS informing them they are exceeding their existing bundle.
"Whether the networks are responsible is a question they alone can answer," she adds.
She explains the Consumer Protection Act 68 of 2008, which came into effect on 30 April 2011, explicitly refers to the rights of consumers - which includes the right to be informed.
"No consumer can make a reasonable choice if he/she is not informed properly. The providers should be pro-active and advise consumers at the selling point, and it should be reflected very clearly in the consumer's contract - in bold letters where the consumers should be asked to sign that he/she understands."
Wilken says consumers also need to take more care when agreeing to contracts and make sure they understand the terms set out in respect to automatic billing when it comes to data usage.
"They must also immediately check their bank statements and check whether there has been any increase in their debit order which they originally completed for a cellphone company. They should lodge a complaint with the cellphone company and if not satisfied send it through to SANCU or directly to the NCC."
* MTN had not responded to a request for comment by the time of publication
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