Skip to main content
Quick exit

Megaphone said Ailin must pay the full cost of her phone after cancelling

Person standing in public transport and using a smartphone.

The issue

Ailin, a student, signed up for a mobile service and a new Gold Phone over 24 months with Megaphone at its city store.

When she got home, she found the coverage was poor and she couldn’t hotspot her laptop.

The next day, coverage was also poor at the TAFE where she studied.

Ailin told Megaphone the service did not work for her, like they said it would in the store. Megaphone said if she cancelled, she would have to pay the $1,499 cost of her Gold Phone.

The investigation

Ailin complained to us, saying she could not afford to buy the phone outright and the mobile service didn’t work.

We asked Megaphone for an accurate coverage map of its mobile network and account notes showing what Megaphone told her in the store.

The parties could not agree how to resolve the complaint, so we investigated the matter fully.

The outcome

We found Megaphone’s mobile network performed badly at Ailin’s home and TAFE.

In the store, Megaphone had not shown Ailin the coverage map.

We decided Megaphone should let Ailin pay for the Gold Phone over 24 months at the agreed rate or return the Gold Phone.

*Names of individuals, organisations and companies have been changed.

Tip

If providers cannot supply agreed services, we can direct them to uphold other parts of agreements or let consumers return goods.