Spark fined for historic operational and billing issues

Spark New Zealand Limited
ARBN 050 611 277 Spark City, 167 Victoria Street West, Private Bag 92028, Auckland, New Zealand


MARKET RELEASE
12 April 2019

Spark New Zealand fined $675,000 for two historic operational
and billing issues

Further to its earlier guilty plea (see market release dated 6 November 2018), Spark
New Zealand has today been fined a total of $675,000 by the District Court in
Auckland for breaches of the Fair Trading Act 1986.

The proceedings, to which Spark pleaded guilty in a previous court hearing, were
brought by the New Zealand Commerce Commission in July 2018, in relation to two
separate historical operational and billing issues:
• Incorrect implementation of a ‘welcome credit’ when joining Spark for some
fibre broadband customers during 2016; and
• A billing implementation issue relating to a 30-day notice period when
customers left Spark

Spark has fully co-operated with the Commerce Commission during this process,
which resulted from mistakes with no malicious intent. Spark sincerely regrets the
impact on customers and has taken all practicable steps to refund those customers
who were billed incorrectly or did not receive their welcome credit. The Court has
taken Spark’s conduct, including its guilty plea, into account when determining the
financial penalty.

Spark has fully refunded existing customers and the vast majority of former
customers, and has sent a letter or email to the last known address of former
customers with a credit balance of $1 or more. Any former customer who thinks they
may be eligible for a refund can apply at spark.co.nz/refund.

The outcome of these proceedings does not impact Spark’s FY19 guidance.


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Cassie Arauzo
Corporate Relations Partner
+64 (0) 21 0249 1562

For investor relations queries, please contact:
Dean Werder
Finance Lead Partner, Product and Performance
+64 (0) 27 259 7176