LETTER: Why can Vodacom hike contract costs during term but consumers can’t leave?
For a company that reported in excess of R17bn net profit in 2021 to treat their customers like this is simply greedy and obscene
05 May 2022 - 14:07
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I am fascinated how accepting Vodacom’s customer base has been of the recent price increases imposed on its subscribers. The most basic tenet of contract law is to create certainty between contracting parties.
I was recently informed by way of email that the contractually agreed two-year subscription price on my contracts is to be increased by Vodacom during the two year period. When querying how they could vary a price that was contractually agreed on, I was pointed to a clause in the contract that allows Vodacom to vary prices during the term of an existing contract. In other words, the customer is bound by the terms of the contract, but Vodacom can vary it at its pleasure and we, as customers, have no choice but to accept it.
This cannot be acceptable, and I doubt very much that this is legal, despite a clause in a contract permitting it to do so. The key term of the contract becomes uncertain. More importantly, from a moral perspective, for a company that reported in excess of R17bn net profit in 2021 to treat their customers like this is simply greedy and obscene.
After more than 20 years with Vodacom I will be voting with my feet and moving to another service provider once my contracts expire.
David Bloch, Cape Town
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: Why can Vodacom hike contract costs during term but consumers can’t leave?
For a company that reported in excess of R17bn net profit in 2021 to treat their customers like this is simply greedy and obscene
I am fascinated how accepting Vodacom’s customer base has been of the recent price increases imposed on its subscribers. The most basic tenet of contract law is to create certainty between contracting parties.
I was recently informed by way of email that the contractually agreed two-year subscription price on my contracts is to be increased by Vodacom during the two year period. When querying how they could vary a price that was contractually agreed on, I was pointed to a clause in the contract that allows Vodacom to vary prices during the term of an existing contract. In other words, the customer is bound by the terms of the contract, but Vodacom can vary it at its pleasure and we, as customers, have no choice but to accept it.
This cannot be acceptable, and I doubt very much that this is legal, despite a clause in a contract permitting it to do so. The key term of the contract becomes uncertain. More importantly, from a moral perspective, for a company that reported in excess of R17bn net profit in 2021 to treat their customers like this is simply greedy and obscene.
After more than 20 years with Vodacom I will be voting with my feet and moving to another service provider once my contracts expire.
David Bloch, Cape Town
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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