The Advertising Regulatory Board (ARB) has ordered MTN SA to either remove or amend its ‘free-to-use’ router advertising, after it has emerged that it is not actually free.

The Star reports this followed a complaint by a consumer regarding MTN’s Shesh@ 600 product that claims to offer a ‘free-to-use’ router.

He was charged an ‘activation fee’ of R553 before MTN would activate the router for use. MTN, however, referred to its terms and conditions, where it stated that ‘MTN reserves the right to charge a SIM activation fee’.

The ARB said the code of advertising practice expressly requires advertisers to refrain from calling a product or service ‘free’ when there is, in fact, a cost to the consumer.

It added that the code also expects advertisers to pertinently draw attention to any mandatory costs that might apply over and above those of the actual product.

The advertising creates an overwhelming expectation that the advertiser provides this router at no cost to the consumer.

The word ‘free’ appears prominently across the examples submitted by the complainant, as well as on MTN’s website whenever reference is made to the router, the ARB said.

The directorate added that it does not believe that the average customer would instinctively expect an upfront ‘activation’ fee to apply to be permitted to use this 'free' router.

‘It is not immediately clear what the basis is for charging this fee, which means the directorate cannot necessarily assume that it is an attempt to recover the cost of this ‘free’ product. However, what is clear is that this is a non-negotiable, mandatory cost that is neither disclosed in the advertising nor pertinently referenced in a way that draws the customer’s attention to it,’ the watchdog body said.

Full report in The Star

ARB ruling