THE Cyprus Telecommunications Authority (CyTA) and MTN have been criticised for misleading customers with the offer of low-cost mobile phones without having enough stocks to satisfy demand and fudging over the small print.
Specifically, the Commerce Ministry’s Consumer Protection Service has been asked to intervene after CyTA was accused of advertising specific mobile phone models at extremely low prices over the past fortnight, without having procured them first.
Some of the complainants stated that the advertised mobile phones were not at CyTA stores a few hours before the offer was under way.
As the adverts continued, a large number of interested consumers were flocking to CyTA’s selling points, only to leave empty-handed. The complaints were especially heated from those consumers who showed up a few hours after the offer had started, but did not find their desired item.
At the same time, CyTA’s market competitors have protested that their own businesses have suffered, as consumers have been discouraged from seeking out their desired mobile phone at other stores.
It appears that the mobile phones in question had only been received in small numbers and had already been sold out.
According to local press reports, given the infamous organisational procedures of CyTA, their mobile phone department did not inform the advertising department of the aforementioned event, the result being that the advertising campaign continued unabated, as did the congestion at CyTA’s selling points, resulting in customer dissatisfaction.
Responding, a CyTA spokesperson said: “Our offer was only for a limited amount of stock and was on a first come, first served basis. The telecommunications regulator does not allow us to sell unlimited numbers.
“Nevertheless, I will be investigating exactly what happened.”
Complaints have also been made against MTN’s trading partners following advertisements that they are giving away free mobile phones without mentioning the small print, such as time-bound contracts.
The practice is quite common in other countries.
On their part, MTN said: “It’s not true that there is no small print mentioned. In fact, I have an advertisement here in front of me, which clearly states that a contract must be signed. There is no misleading message in our ads.”
It should also be noted that Cyprus is experiencing a delay in harmonising its regulations on unfair competition practices according to EU law. These will come into effect just before the end of 2007.
The owner of one of the island’s biggest mobile phone shops told the Mail that, “for the past two weeks, CyTA has been advertising mobile phones for cheaper than cost price. This violates competition law regarding dumping prices, and is also an unfair competition practice.”
The man, who wished to remain anonymous, said he has reported the telecommunications giant to the Competition Committee, as well as to the Commerce Minister.
“The Minister replied that he is unable to take any action until December 12, when new regulations on unfair competition practices will come into effect.”
He added that CyTA, “continued with their advertisements, while knowingly not having the stock.”
“In the case of MTN, there is actually no small print at all. They have been offering discounts of £120 on handsets, without mentioning the fact that an 18-month contract, worth £600, must be signed.”
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