Praneeta Mahajan
Hamilton, April 18, 2024
In a significant move, the Commerce Commission has initiated legal action against One NZ, formerly Vodafone, filing proceedings in the High Court.
The action stems from multiple breaches of the 111 Contact Code, with some alleged breaches still ongoing.
Importance of the code
Telecommunications Commissioner Tristan Gilbertson highlighted the critical importance of the 111 Contact Code, established to ensure vulnerable consumers can reach emergency services during power outages.
“We have taken this action due to One NZ’s blatant disregard for the Code and the safety of vulnerable consumers. One NZ has a troubling history of flouting consumer protection laws, and we must send a clear message that such disregard for mandatory obligations will not be tolerated,” stated Mr Gilbertson.
“Recognising that some consumers, particularly those with health, safety, or disability concerns, are more reliant on landlines during emergencies, the Code mandates that providers ensure these consumers have a means of contacting 111 during power cuts, at no cost to them,” he explained.
Given the widespread compliance across the industry, One NZ’s failure to inform and protect its customers is of grave concern, especially considering its position as the second-largest provider of landline connections in New Zealand.
About the 111 Code
The Code, implemented in February 2021, was designed to safeguard consumers amid the transition from copper landline connections to fibre or other alternative technologies, which require a power supply.
“It is imperative that all telecommunications providers adhere to the Code to safeguard the lives of their customers during power outages. Providers must ensure customers are informed about how they can protect themselves and where to seek support,” Mr Gilbertson stressed. Even one breach could have catastrophic consequences, making it encouraging to see most providers respecting the importance of the Code.”
As the matter is now sub judice, the Commission refrained from further commentary at this juncture.
Context
The Commission was mandated, following the recent update of the Telecommunications Act, to develop the 111 Contact Code to safeguard consumer interests and facilitate the transition from copper to fibre services.
The Code specifically protects consumers who rely on landlines for emergency calling due to health, safety, or disability reasons. With the transition to fibre or alternative technologies, these landlines require an independent power supply during outages to function.
For consumers lacking alternative means of contacting 111 during power cuts, such as mobile phones, providers are obligated to supply devices enabling emergency calls for a minimum of eight continuous hours, at no cost.
Providers are also mandated to ensure consumer awareness of the Code, with annual reminders, and implement processes for registering and supplying vulnerable consumers with alternative means of contacting 111 when necessary.
The majority of providers have complied by supplying vulnerable consumers with mobile handsets or battery backups for their landline services, satisfying these obligations.
Significant penalties
Breaches of the Code under the Telecommunications Act carry significant penalties, up to $300,000 per breach, with additional daily penalties for continuing misconduct.
One NZ, previously Vodafone, has faced prosecution and conviction six times for breaches of the Fair Trading Act since 2010, earning the dubious distinction of being the worst offender under this Act in the economy over the period.
“The legal action against One NZ highlights the Commission’s commitment to upholding consumer rights and ensuring the telecommunications industry adheres to regulatory standards, particularly concerning critical services such as emergency communication,” stated the statement issued by the Commerce Commission.
Praneeta Mahajan is an Indian Newslink reporter based in Hamilton.
