Case Studies

GST change increases price

When GST went up, a customer did not expect his contracted price to increase.

During 2010, a customer agreed to pay $90 per month for a home phone package. He understood the contract would lock him in for two years, and if he wished to cancel he would incur a $200 penalty.

When the customer was charged $92 per month, and queried this with his provider, he was advised this was due to the increase in GST. He was unhappy with this explanation, claiming that when he agreed to the contract he had been advised the price would be $90 per month, not $80 plus GST.

TDR liaised with the provider who then contacted the customer and, as a resolution, agreed to release him from his contract without incurring any penalties.