12 Dec 2013

Slingshot fined $250,000 for breaching act

10:04 pm on 12 December 2013

Internet provider and phone company Slingshot has apologised to customers after it was fined $250,000 for breaches of the Fair Trading Act, including signing up customers without their permission.

Slingshot has pleaded guilty to 50 charges under the Fair Trading Act.

At the Auckland District Court on Thursday, Judge Russell Collins described the company's actions as very disturbing to its customers and caused real heartache to to 27 victims, some of whom had to deal with debt collectors when they refused to pay the bills.

The Commerce Commission said Slingshot and its marketing company made mis-representations to customers - many of whom were elderly - to get them to switch providers.

Victim impact statements said Slingshot then employed debt collectors against some of the customers who refused to pay their bills.

One person, who wanted only to be known as Rose from Christchurch, she said she was called by a pushy tele-marketer but refused to join up.

A week later, Rose said she got an account in the mail demanding money. She said was only sorted out when she threatened to get her lawyer and the Commerce Commission involved.

Outside court, Slingshot chief executive Mark Callander said customers can still have faith in the company and it will refund disconnection fees.