Vodacom Found Guilty of Unfair Market Practices

Lesotho’s communications regulator has found Vodacom Lesotho guilty of unfair market practices.

• The Lesotho Communications Authority has ruled that Vodacom breached consumer-protection laws by imposing airtime restrictions without warning customers.
• It has ordered a full reversal, after 138 subscribers reported unexplained changes to their airtime use.
• The Consumers Protection Association has hailed the ruling as a major win for users against unfair practices.
• Vodacom admitted fault but did not wish to comment further.

In a public notice last week, Lesotho’s communications regulator stated it has found Vodacom Lesotho guilty of an unfair market practice. This comes after subscribers reported unexplained changes to how they could use their airtime packages.

The Lesotho Communications Authority (LCA) says Vodacom failed to provide the required 21-day notice before altering contract terms, and by removing a service without clear prior communication it had engaged in an unfair market practice.

Vodacom was ordered to reverse the airtime restrictions it imposed on its Top-Up Flexi customers. These are customers with a monthly subscription package that includes airtime which they may use for either voice or data bundles.

In May, the LCA issued a notice inviting Vodacom subscribers to report if they had experienced “changes to the usage of airtime” without being informed in advance.

LCA spokesperson Mothepane Kotele said the regulator’s investigation confirmed Vodacom had imposed an airtime-usage restriction without warning.

“This constituted non-compliance with the Consumer Protection Guidelines and Procedures of 2022, the LCA Administrative Rules of 2016, as well as Vodacom’s own approved business rules and terms and conditions,” Kotele said.

While the total number of affected customers can only be determined from Vodacom’s own billing and subscriber records, the LCA “can confirm that it received 138 complaints”.

We asked Vodacom whether it accepted the finding. Spokesperson Lebohang Chefa said, “We are satisfied that all relevant information has been communicated [by the the LCA’s official public notice]”, and Vodacom has “no further comment on this issue”.

The LCA says Vodacom had committed to full regulatory compliance going forward.

Kotele said the LCA’s priority had been ensuring redress for consumers, compelling Vodacom to correct the breach, and putting safeguards in place to prevent similar violations in future.

The LCA had given Vodacom until 26 November to reverse the airtime transfer restriction. The regulator is still verifying whether Vodacom has fully complied and met the deadline.

The LCA urged consumers to continue reporting problems they encounter with airtime transfers.

Consumer Protection Association executive director Nkareng Letsie welcomed the regulator’s actions. “Vodacom should have informed customers in time so they were aware of the changes. It’s a win for consumers for the LCA to uproot anti-competitive strategies. Companies can no longer do as they wish without considering consumer-protection laws,” he said.

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