Consumer Protection Act breach

<p>As per my understanding the Consumer Protection Act on early cancellation of contract says:</p> <p>· " the supplier may impose a reasonable penalty or charge for any goods supp****, services provided or discounts granted to the consumer in contemplation of the agreement running for its intended fixed term [discounted or free cellular phone]; "</p> <p>My understanding on this is that I am still liable for the outstanding capital on the device, which is fair, but Vodacom also imposes a 75% on the outstanding airtime. I do not get 75% discount on airtime so do not see how they can charge 75% penalty on airtime remaining in terms of what the Consumer protection act says.</p> <p>Their official statement is:</p> <p>Cancelling your contract with Vodacom</p> <p>Vodacom says it charges a maximum cancellation fee of 75% which is determined by where a customer is in their contract.</p> <p>“If a customer cancels early on we will still need to recoup the handset and subsidies whereas later on in the contract the cancellation fee will be much less.</p> <p>“Basically, if a customer wanted to cancel their contract our systems would look at the remaining monthly subscription as well as any additional pay-in they did on their handset. From there the system calculates what the customer owes and, as per CPA guidelines, we then reduce that amount by 25%,” it said.</p> <p> </p> <p>If this is compared to a company like MTN which states:</p> <p>Cancelling you contract with MTN<br />According to MTN chief customer experience officer, Eddie Moyce, in accordance with the CPA MTN charges the following cancellation penalties for early termination:</p> <p>All unbilled and outstanding invoices at the time of termination (if any).</p> <p>One month’s subscription.</p> <p>Balance owing on the device.</p> <p> </p> <p>It is clear that MTN is keeping to what Consumer Protection Act is saying and that Vodacom is not.</p>