The complainant provided a photo of the in-store advertisement and argued that it did not explicitly state that the offer was limited to customers whose existing contracts with network providers had been concluded. They claimed this omission created confusion over eligibility for the promotion, stating: “What is not stated is that if you still have a contract with one of the networks, the agreement does not cannot be concluded. »

iStore’s response

In its defence, iStore explained that the “contract price freeze” offer was linked to customers’ existing contracts with Vodacom, Telkom or MTN. The retailer clarified that contract upgrades are only possible once the current contract term has ended, a stipulation determined by the respective network providers.

The company also pointed out that the ad explicitly included the “terms and conditions apply” disclaimer, which encompasses the networks’ upgrade terms and exchange policies.

ARB Assessment

The ARB assessed the case under clause 4.2.1 of Section II of the Code of Advertising Practice, which prohibits advertising likely to mislead consumers through ambiguity, omission or exaggerated claims.

The Directorate acknowledged that the complainant’s interpretation was understandable, but ruled that the advertisement was not misleading to a “reasonable consumer.” He noted that in South Africa it is widely accepted that the process of upgrading a mobile phone contract only happens at the end of the contract term.

Context of “freezing of contract prices”

The ARB highlighted that major network providers such as MTN, Vodacom and Cell C explicitly state upgrade eligibility on their websites, making it clear that these benefits apply at the end of the contract period. For example:

• MTN allows upgrades from the 21st month of a 24-month contract.
• Vodacom and Cell C require customers to verify their eligibility before upgrading.

The Branch concluded that the term “contract price freeze” could temporarily cause confusion among some consumers. However, the hypothetical reasonable consumer would ultimately interpret the offer as allowing customers to maintain the price of their existing contract when renewing their contract and upgrading to a new device.