Complaint: 09/688

Vodafone Instore Poster Advertisement


J. Franklin
Withdrawn / Resolved
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Chairman's Ruling

11 December 2009

Complaint 09/668

Complainant: J. Franklin
Advertisement: Vodafone New Zealand Limited

Complaint: The in-store poster advertisement for Vodafone was headed "Get $119 bonus value when you grab a Samsung E1310B $99"

Complainant, J. Franklin, was of the view that the advertisement was misleading as they had been charged $99.95, not $99.00, for the phone.

The relevant provision was Rule 2 of the Code of Ethics.

The Advertiser, Vodafone New Zealand Limited, said:

"...The complainant was unable to purchase the mobile phone for the advertised price of $99, and instead was charged $99.95. After an internal investigation, it appears that this situation arose purely as a result of pricing and salesperson error.

It appears that the promotional price was incorrectly loaded into the store pricing system. To compound this error, the salesperson in question was inadequately trained and was not aware (a) that the sale price of any product is dictated by the advertised price, not the amount shown in the pricing system and (b) that the pricing system could be manually overridden.

Accordingly we consider that Rule 2 of the Code of Ethics was not breached. The Advertisement was not intended to mislead or deceive, in fact quite the contrary.

In order to address this problem the training process at this store has been reviewed, Sales staff have been reminded of the importance of abiding by advertised prices, and of seeking managerial assistance where necessary..."

The Chairman noted the response from Vodafone New Zealand, and noted that the matter had been thoroughly explained. She also noted that the Advertiser had taken steps to ensure that this error at point of sale did not happen again. Having noted this self-regulatory action taken by the Advertiser, she said that the matter had been resolved and that it would serve no further purpose to place it before the Complaints Board.

The Chairman ruled the matter was Resolved.

Chairman's Ruling: Complaint Resolved