The Commerce Commission is calling on the telecommunications sector to clean up its advertising about the withdrawal of copper services.
Photo: 123rf
The watchdog is concerned about potentially confusing or misleading marketing to consumers about their options as the country moves away from copper-based services.
The lines company Chorus is able to withdraw copper in areas that already have fibre from September, and Spark had been removing public switched telephone network (PSTN) connections since last year.
This had prompted plenty of advertising from the telcos, offering new and expanded services, as they try to retain customers and attract new ones.
"We have examples of people being told they need to move now because Chorus and Spark are in the process of withdrawing their copper or PSTN service when withdrawal isn't even scheduled yet, and marketing materials are making claims about the performance of alternative technologies that don't reflect real world performance," Telecommunications Commissioner Tristan Gilbertson said.
The Commission said that consumers currently on copper-based services are more likely to be vulnerable, elderly or less technologically aware.
"Such consumers are also potentially unaware of the options available to them, or their rights, and are therefore less able to choose an appropriate service when services are being withdrawn," it said.
Gilbertson said the key thing all New Zealanders need to know about copper withdrawal is that copper will not be withdrawn from their area until fibre is in place.
The watchdog had written to the industry urgently to get their views on a new set of marketing principles to reduce consumer confusion.
It said once it had received feedback, it would create a set of guidelines which would be provided to the industry body, the Telecommunications Forum (TCF), which would then have 60 days to develop an industry code.
Gilbertson said if this did not happen the Commission would step in with its own binding code.
"We expect retail service providers (RSPs) will bring their marketing conduct into line with these principles as quickly as possible, so that consumers on copper-based services can make informed decisions about the alternative telecommunications services best suited to their needs," Gilbertson said.
A copy of the letter can be found here. [ https://comcom.govt.nz/__data/assets/pdf_file/0026/260792/Marketing-of-alternative-services-to-consumers-during-copper-and-PSTN-withdrawal-Open-letter-4-August-2021.pdf ]
