TIO Annual Report 2003/04

Case Studies

Misleading Advice at the Point of Sale

The Complaint:

A complainant claimed he was approached by a telemarketer who said he was 'calling on behalf of Company A's network'. The telemarketer told the complainant that he could terminate his mobile contract with Company A and enter into a new contract without penalty. The complainant agreed, believing that the new contract was also with Company A. The complainant was subsequently charged $612 in early termination fees by Company A. When he queried the charges, he was advised that his new contract was with Company B, a different service provider which uses Company A's network.

TIO Response:

The TIO raised a complaint with Company B, citing a possible breach of clause 6.5.1 of the ACIF Customer Transfer Code. This clause provides that a supplier must ensure that its sales representatives present the supplier's services in a clear, truthful and honest manner and do not mislead or misrepresent the supplier's affiliation with any other suppliers.

The Outcome:

Company B released the complainant from the new contract and Company A agreed to waive the early termination fee and reactivate his previous account. Company B also agreed to change its outbound telemarketing scripting, so that its telemarketers no longer introduced themselves as 'calling on behalf of Company A's network'.

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