Commerce Commission takes One NZ to court, accuses telco of breaching 111 contact code

The Commerce Commission is filing court action against One NZ, accusing the telco of multiple breaches of the 111-contact code.    

"We've brought this action in light of One NZ’s disregard for the code and the safety of vulnerable consumers," said Telecommunications Commissioner Tristan Gilbertson.  

Gilbertson said One NZ, formerly Vodafone NZ, had a "long history of breaching consumer protection laws - so we need to send a strong signal that we won't tolerate any disregard for its mandatory code obligations".  

He added the code was put in place in 2021 to protect the growing number of consumers moving away from copper landline to fibre connections.  

Gilbertson pointed to the fact some vulnerable consumers may need to call 111 during a power cut for health or disability reasons. Therefore, under the code, providers needed to give consumers a way of calling emergency services during a power cut, he said.  

"It's critical that all telecommunications providers comply with the code to ensure the safety of their customers whose lives may be at risk in a power cut.  

"The onus is on them to ensure their customers know how they can protect themselves and where to go for further support.  

"Just one breach could have devastating consequences - so it's encouraging to see most other providers respecting the importance of the code and doing the right thing for their customers."  

Commerce Commission takes One NZ to court, accuses telco of breaching 111 contact code
Photo credit: File

The commission added: "One NZ... has been prosecuted and convicted six times for breaches of the Fair Trading Act since 2010 - making it the worst offender under this Act of any entity in the economy over this period."  

A statement from One NZ said it was committed to supporting vulnerable New Zealanders who rely on their landlines for 111 calls. 

"We are disappointed to learn of this [civil proceeding in the High Court]. We have fully cooperated with the commission since we became aware of its concerns and have been transparent throughout.  

"Given our openness, cooperation and commitment to achieving compliance, the commission's decision to commence proceedings came as a surprise to us.    

"We were open with the commission about where we had gaps, such as missing the deadline to contact some existing vulnerable customers within 12 months. We also missed ensuring that certain annual communications went to all landline customers about the 111 Code, however we continued to share the information via other channels including on our website, as part of the sales process and in welcome emails."  

One NZ had "always complied with the key requirement to ensure all relevant customers have either a mobile phone or battery backup", the statement said.  

"We are not aware of any customers being impacted or harmed."