MTN Seeks to Overturn Consumer Commission Complaint
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South Africa's MTN has argued in a tribunal that a notice of non-compliance issued against it last year was invalid and the investigation into its practices was illegal.
Last year, the company was issued the notice by the National Consumer Commission, which alleged that MTN was still using consumer contracts that hadn't been updated to comply with recent consumer protection laws.
Specifically, the contracts were not sufficiently transparent in detailing call costs and did not offer guarantees of the quality of service to be expected.
MTN argued before the National Consumer Tribunal that it was using the amended contracts but also that the non-compliance notice was sent to the wrong division within the company.
Where the notice was delivered to is important, as the Commission is seeking the maximum fine of 10% of revenues that it can seek. The notice was sent to the parent company instead of the service providing subsidiary. If upheld against the parent company, the fine could be potentially much higher.
The hearing continues.
On the web: BusinessReport
Tags: [mtn] [South Africa]
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