Legal View

MTN to face tribunal

Read time 1min 20sec

MTN, SA's second-largest cellular operator, is set to appear before the National Consumer Tribunal next Tuesday, after the National Consumer Commission (NCC) told the company to amend its contracts.

In August, Vodacom, MTN and Cell C were issued with notices to change their terms and conditions to comply with the new national Consumer Protection Act (CPA).

Commissioner Mamodupi Mohlala says MTN will appear before the tribunal next Tuesday, because it failed to amend its standard contracts to fit in with the CPA. She says a date has yet to be set down for when the other two operators will appear before the body.

The CPA, which came into effect this April, is a wide-ranging law that seeks to protect consumers. Its enforcement body, the NCC, has been investigating several industries, including mobile operators.

MTN did not respond to a request for comment, despite indicating it would do so.

Vodacom previously said it had been amending its terms and conditions to comply with the law. Graham Mackinnon, Cell C's group general counsel, says the company took its compliance notice to the tribunal and does not believe it is in breach of the CPA.

Under the CPA, consumers have the right to cancel contracts by giving 20 days' notice, and agreements can no longer be automatically renewed. If companies fail to comply with the legislation, they face fines of either R1 million, or 10% of turnover, whichever is the greater amount.

Related story:
Operators 'surprised' at compliance notice

Login with