Vaya Responds To Pressure From ACCC Over Consumer Complaints

Wednesday 16 March 2016 @ 9.59 a.m. | Trade & Commerce

As reported in an ACCC Media Release, budget telecommunications company Vaya has taken measures to address concerns raised by the Australian Competition and Consumer Commission (ACCC) following a rise in consumer complaints.

Background

During 2015, the ACCC commenced an investigation into Vaya’s practices after customers complained about emails they received with contract variations.

In September 2014, Vaya sent an email to selected customers stating that at the end of their 24 month contract they could keep their current plan if they paid a monthly $9.90 fee called a “Plan Freeze Fee”, on top of their monthly access fee. Vaya sent this email to customers before their 24 month contract expired and in some cases charged the fee before customers’ contracts expired.

In February 2015, Vaya sent an email to its customers stating that all customers were required to pay a “once-off, refundable $20 Security Deposit” (Security Deposit) in accordance with Vaya’s Terms and Conditions and the Telecommunications Consumer Protection Code (TCP Code).

About Vaya

Vaya was acquired by Amaysim for $70 m in January 2016. Amaysim has also been criticised after it changed its billing cycle from 30 days to 28. The plans still cost the same per month, meaning Amaysim customers will be paying approximately 8 per cent more for mobile data plans.

Amaysim currently has 764,000 mobile subscribers in Australia.

The ACCC Investigation

The ACCC formed the view that Vaya’s Plan Freeze Fee email was likely to be misleading because it represented that consumers were required to pay extra fees, when in fact, under their contracts rates were fixed.

The ACCC also considered that Vaya’s Security Deposit email was also likely to be misleading as it failed to inform consumers of their rights of termination under Vaya’s terms and conditions and Vaya’s obligations under the TCP Code.

Redress by Vaya

Vaya has responded by refunding customers the plan freeze fees and security deposit and has informed customers of their right terminate their contracts without penalty.

A Vaya spokesperson said:

“The ACCC media release issued on Tuesday 8 March concludes the Vaya investigation, following voluntary steps taken by the company to address the areas of concern. We are committed to improving our customer communications and advertising.”

Advice for Consumers

When signing up for contracts, consumers should familiarise themselves with their rights in the event of a contract variation. If consumers have concerns about changes to their telecommunications contract they can:

  • Contact their provider to ask questions about the changes;
  • Contact the Telecommunications Industry Ombudsman (TIO); and
  • Lodge a complaint with the ACCC or local fair trading agency.

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