SA phone companies to amend consumer contracts
South Africa's four cellular network providers and the two fixed-line operators have confirmed that they will amend their consumer contracts within the next three months to ensure that these comply with the Consumer Protection Act, reports IOL and Times Live.
This comes after the National Consumer Commissioner Mamodupi Mohlala prepares to sign legally binding consent order agreements with each company's chief executive. In terms of the agreements, companies can be fined R1 million or 10% of turnover if the consent order agreements are breached.
Changes to the consumer contracts include the requirement that companies must prove the consumer has a financial benefit from using bundled services; the pricing of services must be explained and consumers have the right to terminate a contract within 20 days.
It also prescribes that contracts cannot be automatically renewed and that consumers are entitled to keep unused minutes for up to three years and not just six months.
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