The customer bought a phone plan online which included a “discount for life” in the order summary. After two years, the customer was informed that the plan would no longer be available and that he would be migrated to a similar plan. However, the discount would no longer apply.
The customer raised the issue with their provider and was offered a credit along with an extended discount for a limited period. The provider pointed out that the terms and conditions of his purchase had stated the discount was for “the life of the plan” and suggested that there must have been an error in his order summary. The customer was not happy with this solution and contacted TDR.
Next steps
TDR helped the customer and provider to work through the issues at mediation. The customer explained how the order summary had set the expectation of a discount for life regardless of the plan he was on. They felt that having something different in the terms and conditions was inaccurate and potentially misleading advertising.
During the mediation, TDR explored the question of whether this was misleading. The mediator discussed the positions of the customer and the provider, the Terms and Conditions, relevant legislation including the Fair Trading Acts guidance on false, misleading, and deceptive advertising, and the TCF Customer Care Code in relation to “easily understood” pricing information.
TDR guided the parties though a facilitated negotiation where several offers of resolution were offered and considered.
Outcome
Through mediation and creatively exploring various outcomes, the parties amicably agreed to a fair and reasonable settlement of the complaint.
Lessons learned
This case highlights the importance of consistent wording across all marketing materials, terms and conditions, and communications from providers to their customers to minimise the chances of misunderstandings.
It also acts as a reminder for consumers to read the terms and conditions of the services they are purchasing.