The Commerce Commission has released Product Disclosure – Price and Cost Guidelines to improve the clarity and comparability of pricing information for mobile and broadband services in New Zealand.

Telecommunications Commissioner, Tristan Gilbertson, says it can be difficult for consumers to understand exactly what they'll be paying, given the complexity of offers in the market.  

“We’re cutting through the marketing confusion by helping consumers understand the true cost of different offers from telecommunications providers. We want Kiwis to be able to compare offers more easily and avoid any surprises,” Mr Gilbertson said.

The guidelines https://bit.ly/3JsN2us require providers to state a monthly average price when this is different from the advertised price, and make standardised offer summaries available, so that consumers can more easily compare different offers. 

“Consumers told us that understanding how much they'll end up paying each month, and having access to standardised offer summaries, would make it easier for them to find the best deal. Our guidelines give Kiwis what they need to compare offers on a like for like basis and make informed decisions,” Mr Gilbertson said.

The Commission is also tackling early termination fees by ensuring consumers know when they apply and how much it will cost them to exit a contract early.

"Early termination fees are a recurring pain point for consumers –  either because they didn't realise they signed-up to them or because it's not clear what the exit costs are when a better deal comes along," Mr Gilbertson said.

The guidelines require early termination fees to be prominently disclosed up-front to consumers and reduce over the period of the contract. Providers must also ensure their customers can easily find out how much is left to pay at any point in time. 

“With clear and consistent pricing and penalties information customers can make more informed choices and know what they’re signing up to – right from the start,” Mr Gilbertson said.