Phone Card Company Mislead Customers

29 September 2011 - Which Way to Pay

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Phone Card Company Mislead Customers

One of New Zealandís biggest calling card providers has admitted to providing misleading data to customers about its calling charges. Compass Communications was charged on five different counts by the Commerce Commission under the Fair Trading Act over issues relating to several of the companyís phone cards.

A lawyer representing Compass Communications attended the hearing in Auckland District Court earlier today. The phone card company initially faced 97 charges, but 92 of these were dropped by the ruling of Judge Simpson presiding over the case. The 5 standing charges relate to the prepaid phone cards World Phone, Maihua and Go Call, as well as phone cards V8 and Talk Ďn Save.

Among the allegations are claims that point of sale information gave a false rate per minute, which was used by the company for over a year, the charges dating from 1st June 2008 until 30th September 2009. The case came to the attention of the Commerce Commission following a number of complaints that sale material broke fair trading laws. The company will receive sentencing on 10th November.

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