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Vodafone New Zealand accused of misleading conduct

By Sarah Chen
1 min read
Vodafone Australia
Vodafone Australia
In this article (5)

New Zealand’s Commerce Commission has filed 27 charges against Vodafone New Zealand, accusing the operator of engaging in false and misleading conduct with its FibreX hybrid fibre coaxial (HFC) service.

The charges filed in the Auckland District Court allege that Vodafone NZ has been misleading customers since October 2016 by using the name FibreX in advertising and marketing.

The Commerce Commission alleges that by using the name FibreX Vodafone mislead customers into thinking that FibreX is a full fiber to the home service comparable to the services delivered over the state-subsidized Ultrafast Broadband (UFB) network.

Vodafone NZ has announced it will defend the charges in court, and insisted it has been clear in its communications throughout the life of the service.

New Zealand’s Advertising Standards Authority has already ruled that the company’s advertising of FibreX has not been misleading, and noted that customers are more interested in the speed their broadband service can provide than the technology behind it.

“The single biggest pain point our customers are facing is fiber installation delays by local fibre companies, and FibreX offers an alternative for customers who want to avoid these delays while enjoying the benefits of ultra-fast broadband,” the company said in a statementhttps://news.vodafone.co.nz/article/vodafone-defend-fibrex-charges

“For consumers wanting broadband services at the highest available speeds, FibreX represents an extremely competitive option. We are proud of being able to offer this over our own network and this is why we will stand up to the charges.”

Questions & Answers

Q.

Which body has accused Vodafone New Zealand of misleading conduct regarding its FibreX service?

A.

New Zealand's Commerce Commission has filed 27 charges against Vodafone New Zealand. They allege the operator engaged in false and misleading conduct by using the name FibreX in advertising and marketing since October 2016.

Q.

What is the basis of the Commerce Commission's charges against Vodafone New Zealand?

A.

The Commission alleges Vodafone misled customers into thinking FibreX is a full fibre to the home service. They believe it was implied to be comparable to services delivered over the state-subsidised Ultrafast Broadband network.

Q.

Has any other authority commented on Vodafone's FibreX advertising?

A.

Yes, New Zealand's Advertising Standards Authority has already ruled that the company’s advertising of FibreX was not misleading. They noted customers prioritise speed over the underlying technology for broadband service.

Q.

What is Vodafone New Zealand's defence against these charges?

A.

Vodafone New Zealand states it has been clear in its communications throughout the service's life. They argue FibreX offers an alternative for customers to avoid fibre installation delays, providing ultra-fast broadband at competitive speeds.

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Vodafone NZ's FibreX defence:

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