Vodacom increasing price of 24-month contract, mid-contract term

Hi Vodacom,

You have increased the price of my 24-month Smart TopUp S+ from R245.22 to R286.09 per month. I am only mid-way into my 24 month contract, so how is this fair that you can just increase my monthly subscription by over 20%?

I understand there was a vat increase which is out of your control and not worried about, but the massive increase in subscription fees is totally unacceptable. I would be happy to continue to pay off the device that I currently have on the contract, but I don't accept paying more for the contract mid-agreement. We have a 24-month agreement and surely the price can only be adjusted at the end of that term? In all my years of having a cellphone contract, never once has the price been adjusted until the end of the term.

Yes one of your agent said there is a cause "30 in the terms and conditions" that (not the exact quote, but close) "allows vodacom to make amendments to the terms and conditions of the contract".

Don't tell me that vodacom were unable to forecast and adjust for price fluctuations that may occur 24-months from the time that someone signs a contract. Go and increase the price of all new smart S contracts when someone signs up or upgrades, but surely it's not legal to just increase my price per month and say that you have a clause in your terms and conditions that allows you to do that.

Here's an extract from a similar Telkom case:

But what if they want to change the price mid-stream? “In principle, because price is a material term of a contract, they could not do that without agreement from the customer,” said de Stadler.

“However, their contracts probably contain a clause which says that they are allowed to adjust prices from time to time, and that the customer can’t cancel because of that.”

“I am not aware of any cases where the legality of such a clause has been tested, but in terms of the Consumer Protection Act, this would be presumed to be unfair unless Telkom gives the customer the opportunity to withdraw from the contract,” she said.

De Stadler said that in most cases customers should have the right to cancel their contracts with price increases.

“I am of the view that in the post-CPA world suppliers will be required to give customers the right to cancel in 90% of cases,” she said.

“There may be cases where a company has a good reason for the practice. For instance, where the price is coupled to something which they don’t control, such as the interest rate.”

The customer must be given time to consider whether they want to cancel or not, and in that period they should not be forced to pay the increased price, because they have not agreed to it, said de Stadler.

Telkom responded, saying that “in terms of condition 6.6.3 of Telkom’s Standard Terms and Conditions, a customer may, after implementation of a price increase, on 20 business days written notice to Telkom elect to cancel his/her agreement if the customer is not in agreement with the price increase”.

--- I was given no option to cancel my contract and to keep paying off the handset. This is wrong Vodacom.