
The Advertising Standards Authority of South Africa (ASASA) is investigating Vodacom’s advertising policy prior to their May 1, 2015, price hike.
The investigation centres around a complaint that Vodacom continued to advertise 24-month contracts featuring incorrect pricing, despite being fully aware that they would be increasing the price of their contracts as of May this year.
The complaint lodged with ASASA regards their Smart S contracts, which are being advertised for R199 x 24 to this day (April 29, 2015). This despite Vodacom announcing in mainstream media in March 2015 that they would be increasing the contracts to existing and new customers from May 1, 2015.
The complainant argued that if Vodacom was aware that they were increasing the price, why did they not include this information in all print, radio, TV and internet advertising.
If you go the the Vodacom stite today, you will see them still advertising a price (not including the increase for a Smart S contract) that, if you sign today, will be invalid in less than two days.
While the investigation is only at the complaints assessment stage, ASASA has informed the complainant that they have assessed the advertisement and are currently escalating the matter for a formal investigation.
Obviously, instructing Vodacom to withdraw the adverts and correct its website will be of little effect. But it is 1 point to the little guy and 0 to Vodacom.
While this will not affect the price hike, it is hoped that the action will allow a precedent to be set to prevent service providers from placing clearly false and misleading adverts in future once they formally announce an increase.
Other complaints lodged with the National Consumer Council against the validity of the price hike on existing contracts are also underway, but they seem to have run into a legal nowhere land. The Act is apparently silent with regard to existing contracts, experts say… As the NCC have been remarkably silent on their progress, one can only assume the actual price increase will go ahead. But when an Act of law is silent, surely its voice should be tested in court. Let us hope the NCC see it that way.
The Advertising Standards Authority of South Africa is an independent body set up by the marketing and communications industry to ensure that its system for self-regulation works in the public interest. It enforces a Code of Advertising Practice, providing the basis of arbitration for disputes within the industry or between advertisers and consumers.
This screenshot of the Vodacom site was taken on April 24, 2015. Today – April 29, 2015 – we checked again and there has been no change!




