TIO warning: free phones phoney

By Andrew Colley
07 December 2001 04:37 PM
Tags: tio, ombudsman, mobile phone, consumer
The Telecommunications Industry Ombudsman (TIO) has warned consumers to be wary of companies offering free mobile phones in exchange for marketing information.

Since July, the Ombudsman has received around 50 complaints from consumers regarding the offers, a number claiming to be victims of bait-and-switch schemes; lured into carriage service contracts by accepting mobile phones they believed that they had won.

In one instance, a man was told he had won a phone for participating in a market survey. The document he signed in order to claim the phone was a service contract. The man was asked to pay a termination fee when he attempted to have the service disconnected.

"It is not surprising that people are being caught out by this," said Pinnock, Telecommunications Ombudsman. "When someone is told they have 'won' a mobile phone, they assume they will not have to pay for it."

The report also suggests that the suspicious companies may have hawked some vulnerable consumers to persuade them to accept the phones.

Another consumer, a woman who lived alone, told the TIO she felt threatened by numerous calls and messages left by one of the companies after she refused to accept a mobile phone as a reward for participating in a market survey.

Breaching of the telecommunications industry's code on prices, terms and conditions, Telecommunications Ombudsman John Pinnock described the sales methods by some mobile phone dealers as devious.

A TIO spokesperson said a number of service providers had adopted the unusual marketing practises, either directly or through agents, but would not name the mobile service providers involved.

This isn't the first time the TIO has singled-out mobile phones carriage service resellers for criticism.

"The conduct of dealer and agent representatives of mobile phone providers continues as a black mark on the industry. The TIO's experience is that there is significant consumer resentment about some of the dubious tactics employed by salespeople to sign up mobile phone customers," said Pinnock in his annual report, released in October.

Over the 2000-2001 period, service contract related complaints accounted for 59.7 percent of those listed under the TIO mobile phone category, up 5.3 percent over the previous year.

Advertisement

Talkback 0 comments

Latest Videos

Sponsored content

Power Centre - Content from our premier sponsors

Blogs

  • Suzanne Tindal Sick of broken tender sites
    Some of the state governments desperately need to invest in more user-friendly tender sites so that looking for information on government tenders doesn't have to be a game of blind man's bluff.
  • Array Cyberwar: What is it good for?
    In this week's episode, Cyberwar. What is Australia's place in the world of digital warfare? What are the implications for the NBN?
  • Array Is wholesale-only backhaul just a pipedream?
    The potential acquisition of Pipe Networks by SP Telemedia has raised the question about whether vertically integrated backhaul providers will mean higher wholesale prices for ISP customers.
  • More blogs »

Tags

Back to top

Featured