Telecommunications company One NZ – formerly Vodafone – has been fined a record $3.675 million for misleading consumers in the marketing of its FibreX broadband service, according to the Commerce Commission.

Commission Chair, John Small, says the penalty is the highest ever handed down by a court under the Fair Trading Act, adding it is “a significant win for Kiwi consumers”.

“One NZ’s conduct was misleading and, in addition to the consumer harm, it distorted competition for the supply of broadband services in New Zealand.”

This will also serve as a strong deterrent to other large businesses, Small added.

In 2021, One NZ was convicted of tricking consumers into believing its FibreX service was fibre-to-the-home broadband and that FibreX was the only available broadband service at their address.

The service was offered in Wellington, Kapiti and Christchurch between October 26, 2016, and March 28, 2018.

The company was fined $2.25 million by the District Court last year as the result, but the Commerce Commission later filed an appeal stating that the penalty was ‘manifestly inadequate’ and did not reflect the seriousness of the conduct.

In an appeal judgement released by the High Court last week, Justice Moore allowed the commission’s appeal against the original fine and said a greater uplift was required – particularly given One NZ’s history of non-compliance with the Fair Trading Act.