o2 false advertising on international sim?

cosaurus

O2 advertises a SIM card and a rate plan (O2 unlimited) that says it provides
a) discounted international rates (1p/min to India etc)
b) free O2 calls and texts if you top up.

See www o2 co uk/international/intsim for details.

For b) the website is clear that if you top up by £10 you get free O2 to O2 texts, and that if you top up by £15, you get free O2 to O2 calls.

However, at no point on their website does it say that you get discounted international rates only if you top up. The unstated assumption is that this service compares with MVNO providers like Lycamobile and Lebara mobile, which also have similar international rates.

However, when I contacted O2 customer service to find out why I'd been charged >£1/min for a call to India, they said it was because I had not topped up. I had a balance of £18.77 and made the reasonable assumption that the international rate is always available and not subject to top up.

I think O2 need to change their advertising to say "Discount rates valid for 1 month after each top up"

What does everyone think? Is this a case of misleading advertising?

grumbler

I can be missing something too, but IMHO it is pretty clear that only 'additional' unlimited free O2 calls and texts are a subject to a minimum £10/£15 monthly topup.

I'd ask them to quote the part of the T&C saying otherwise.

cosaurus

grumbler wrote: »

I can be missing something too, but IMHO it is pretty clear that only 'additional' unlimited free O2 calls and texts are a subject to a minimum £10/£15 monthly topup.

I'd ask them to quote the part of the T&C saying otherwise.

Thanks for the feedback, Grumbler. Glad to see I wasn't the only one who interpreted it like that. I wanted to post this here so that someone else doesn't get burnt like I did and lose £12 thinking they were spending 10 pence!

I will send a copy of the complaint to ASA but does anyone have suggestions on who to contact at O2?

O2 chat support "Guru" Danielle was polite, but unhelpful:

Guru - Danielle: But this is how it works
Guru - Danielle: But just to explain on pay and go there is no service that can be used without topping up on it's anniversary date. As your tariff O2 unlimited includes Discounted International Calls & Texts allowance. So you'll get to use this tariff with Discounted International Calls & Texts allowance only if you top up on every anniversary date. The same goes with Imternational card sim card.

grumbler

cosaurus wrote: »

Thanks for the feedback, Grumbler. Glad to see I wasn't the only one who interpreted it like that. I wanted to post this here so that someone else doesn't get burnt like I did and lose £12 thinking they were spending 10 pence!

I will send a copy of the complaint to ASA but does anyone have suggestions on who to contact at O2?

How do I make a complaint?

O2 chat support "Guru" Danielle was polite, but unhelpful:

Guru - Danielle: But this is how it works
Guru - Danielle: But just to explain on pay and go there is no service that can be used without topping up on it's anniversary date. As your tariff O2 unlimited includes Discounted International Calls & Texts allowance. So you'll get to use this tariff with Discounted International Calls & Texts allowance only if you top up on every anniversary date. The same goes with Imternational card sim card.

*I think* Danielle was talking rubbish:

16. ...Your anniversary date is the date each month by which you must have topped up with at least £10 in order to receive your next monthly Tariff’s free unlimited O2 calls and/or O2 texts allowance.
..
19. The Tariff’s free unlimited O2 calls and/or O2 texts allowance will be replenished every month on your anniversary date provided you have topped-up by at least £10 by this date each month. If you do not top-up by this minimum amount you will not receive Tariff’s free unlimited O2 calls and/or O2 texts allowance until you next top up....

International sim terms & conditions

cosaurus

You're a star, Grumbler! Making a formal o2 complaint now, citing the relevant bits.

grumbler

On second thought I think it is unreasonable to expect to pay 1p/min for an international call from a mobile (is it?). I think what it possibly means is that you pay 1p/min on the top of the standard rate of making O2-O2 call. If you don't have free O2-O2 minutes, you pay much more than 1p, but I don't see how this can be £1/min.

Just a thought... I don't see anything like this in the T&C.

cosaurus

Hi Grumbler

Lebara and Lycamobile charge 1p/min (all charges included) to places like India even though their UK calls are 10p/min.

I think all these companies manage such low international rates because they use VOIP backends, and because the local termination charges in those countries are low/negligible (unlike the UK).

O2 is clearly targeting the same user demographic as Lebara/Lyca with ads that have flags of India Pakistan Bangladesh Poland Turkey etc, so the implication is quite clear that they are saying - our service is as good as/better than theirs...

Thanks again. Have sent the complaint.

Neil49

grumbler wrote: »

I can be missing something too, but IMHO it is pretty clear that only 'additional' unlimited free O2 calls and texts are a subject to a minimum £10/£15 monthly topup.

I'd ask them to quote the part of the T&C saying otherwise.

I've just got an International Sim which I've put into a spare phone so it will only be used for international calls.

I have read through the T&C's and there is nothing (as far as I can see) that states that I have to top up £10 every month in order to continue getting the quoted rates.

I checked this before purchasing and, if it had said as much, I wouldn't have got the sim in the first place.

I haven't used it yet but will be watching to see the outcome of the investigations with O2.

cosaurus

Neil49 wrote: »

I have read through the T&C's and there is nothing (as far as I can see) that states that I have to top up £10 every month in order to continue getting the quoted rates.

I checked this before purchasing and, if it had said as much, I wouldn't have got the sim in the first place.

Exactly my point. Thanks for confirming that Neil49. I'll keep everyone posted (have complained to both O2 and ASA).

cosaurus

Hi all

It's too soon to hear back from O2 or ASA, but here is something that might provide clarity:

See www o2 co uk/termsandconditions/tariffsandboltons
Section International sim terms & conditions

6. For existing O2 Unlimited customers as of 21st Nov 2011, you will start to receive discounted UK calls and texts to international mobiles from the date when your domestic allowances are first renewed (as per clause 8 below) from 22nd Nov 2011.

7. For existing customers switching to the Tariff, you will start to receive discounted UK calls and texts to international mobiles when your domestic allowances are first received as per clause 8 below.

8. In addition to the benefits listed in clause 2, the Tariff also gives you either:
Unlimited free O2 to O2 texts each month provided you have topped-up between £10 and £14 in the previous month OR;
Unlimited free O2 to O2 texts and unlimited free O2 to O2 calls each month provided you have topped-up over £15 or more in the previous month.
These free allowances are for use in the UK only and exclude video calls and picture messages.

----

I think this means that you need to top up ONCE to activate the plan, but that subsequently you don't have to top up every month for the discounted international rate. This would explain why I got burned. I had a balance of ~£20 when I switched to this tariff, so I didn't top up.

cosaurus

I'm very impressed with ASA's thorough and clear response. And a bit ashamed for not having done my own homework more thoroughly before complaining to them. If only O2's customer service had been as clear as she is:

YOUR COMPLAINT ABOUT TELEFÓNICA UK LTD / INTERNATIONAL SIM

Thank you for contacting the ASA and for your patience while we have looked into your complaint.

We have assessed the ad and your complaint but consider that there are insufficient grounds for ASA intervention on this occasion. Our role as an organisation is to help ensure that advertising is legal, decent, honest and truthful. We can intervene if an ad appears likely to be in breach of the UK Code of Non-broadcast Advertising Practice, Sales Promotion and Direct Marketing by, for example, being likely to cause serious or widespread offence, being materially misleading or risking causing significant harm.

While I appreciate your concerns, we have spoken with the advertiser who confirmed that the international rates are not subject to a monthly top-up. They explained that the issue in your case is that you are trying to switch from an O2 simplicity tariff to the International sim tariff and, as per the terms and conditions available on the website, you need to top-up to activate the new tariff. They informed us that once you top-up, the International Sim tariff will start and you will then get discounted calls to India. From that point onwards, there is no need to top-up every month – as long as you have enough balance you can continue to make discounted calls. As the terms and conditions are available on the website and they make clear that a top-up to first receive ‘domestic allowances’ is needed for existing customers switching to the tariff, we consider that the ad is unlikely to mislead consumers to their detriment for the reasons you suggest and as such, we will not be taking any further action on this occasion.

I realise this outcome may disappoint you, but thank you for taking the time to contact us with your concerns.

Advertising Standards Authority
Mid City Place, 71 High Holborn
London WC1V 6QT
www asa org uk