The Advertising Regulatory Board (ARB) has dismissed a consumer complaint regarding alleged misleading advertising by iStore. The complaint revolved around promotional material displayed in an iStore branch in July 2024, which the complainant claimed failed to clarify the terms of a “Contract Price Freeze” offer.
The complainant provided a photograph 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 concluded. They contended that this omission led to confusion about eligibility for the promotion, stating, “What is not stated is that if you still have a contract with one of the networks, the deal cannot be done.”
iStore’s response
In its defence, iStore explained that the “Contract Price Freeze” offer was tied 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 advertisement explicitly included the disclaimer “terms and conditions apply,” which encompasses the networks’ upgrade terms and trade-in policies.
ARB’s assessment
The ARB evaluated the case under Clause 4.2.1 of Section II of the Code of Advertising Practice, which prohibits advertising that is 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.” It noted that in South Africa, the process of upgrading a mobile contract is widely understood to occur only at the end of the contract term.
Context of ‘contract price freeze’
The ARB highlighted that major network providers such as MTN, Vodacom, and Cell C explicitly outline upgrade eligibility on their websites, making it clear that such benefits apply at the end of the contractual period. For example:
MTN allows upgrades from month 21 of a 24-month contract.Vodacom and Cell C require customers to check their eligibility before upgrading.
The Directorate found that the phrase “contract price freeze” might momentarily confuse some consumers. However, the hypothetical reasonable consumer would ultimately interpret the offer as allowing customers to maintain their existing contract price when renewing their contract and upgrading to a new device.
