Blackberry Storm 9500 being sold on eBay by unhappy Vodafone customers

Blackberry Storm 9500 being sold on eBay by unhappy Vodafone customers - 9th Jan 2009

Some Vodafone customers who have purchased a Blackberry Storm 9500 on a contract are selling their handsets on eBay because they cannot get signal on the phone and as they are outside their fourteen day exchange or return period, they believe that they are stuck with the contract for the duration. Vodafone appears to be the only UK network that offers fourteen days no quibble exchange or return policy.

Blackberry Storm 9500 was launched in the UK in November 2008 as a Vodafone exclusive handset and customers have to sign an eighteen or twenty four months contract to get the handset for free. Although most new products have teething issues, this handset, amongst other issues, seem to have a problem holding on to signal.

Click here to read the previous article highlighting Blackberry Storm issues.

At one point this week there were upwards of 60 handsets on sale on eBay (UK). People who purchase these handsets will have to use a SIM only contract with a service provider and will have to use Research in Motion (RIM) to rectify any hardware faults. Vodafone has stated that as this is a Vodafone exclusive handset, they will not unlock it to be used on other networks.

Although it is normal that within hours of a new handset being released, some devices ends up on eBay, a number of these sellers are Vodafone customers who are selling this handset because they believe they cannot return or exchange this handset and that they are locked in to the contract although the phone does not have a signal most of the time.

MK Financial Solutions’ News Desk spoke to five such customers and four stated that the main problem for them was the signal issue. They also believed that as they were outside the 14 days return and exchange period, they had no other redress available to them and that they will have to keep the contract for the full eighteen or twenty four months. When asked why they kept the phone when it had no signal, they stated that they were told that a software update will fix the issue and that it was being worked on.

Trading Standards

We approached the Trading Standards regarding the contract and sales of goods act issues and Mr David Sanders, Vice Chairman of the Trading Standards Institute said, “When purchasing the telephone, there are two elements to the contract. First is the provision of the service by the air time provider, and the second is the actual hand set (goods). Both elements, services and goods, are covered by the different consumer legislation....

If a customer went to a shop (or used the telephone sales), stating where they were going to use the phone and they were told that the phone will work as specified by the manufacturer then this enhances the consumer's rights (fitness for purpose)....

If the phone then does not work, the consumer should take it back and ask for either the cancellation of the contract (where there is in fact no network coverage), or for a replacement phone of the similar specification if the hand set is faulty. Failure to supply goods that are of satisfactory quality (fit for purpose) and corresponding with the given description is a breach of the consumer's statutory rights and can be remedied by money back, repair or replacement. Where a repair or replacement is sought there is no need to prove the fault within six months of purchase. Thereafter consumer’s rights of redress last for up to six years but proof of fault may be needed....

With a service contract failure to provide the service from the outset is a fundamental breach of the contract and the consumer could end the contract and get back all monies paid. Intermittent failures of service may give rise to a valid claim for compensation for a pro rata payment for loss of air time....

Shops sometimes give customers certain time limits to return goods for a refund or replacement. Such time limits must not appear to restrict the consumer's statutory rights as to do so could be classed an offence which local trading standards departments will investigate if it is reported to them" .

Vodafone Response

In a statement, Vodafone said, “It is not unusual for very sought after phones to appear on eBay. The BlackBerry Storm continues to sell very well in our online store, on the high street and through telesales, and the overwhelming feedback is that customers love its multimedia functionality......

Once you have taken out a contract with Vodafone the phone is your property, as part of the arrangement you are responsible for the payment of the contract however. So if you were to give the phone to someone else their responsibility to pay for the contract would still rest with you – unless you made an arrangement directly with Vodafone to transfer the contract ownership”.

Vodafone’s new CEO, Vittorio Colao has promised that he will cut the costs by £1bn and these cuts are expected to be implemented during 2009. UK, Spain and Italy are thought to be the most costly operations and it is believed that these will come under close scrutiny. Vodafone has already moved its European purchasing department to Luxembourg to take advantage of the different tax regime.

Vodafone and Orange are reported to be close to signing a deal that will see the two companies share the costs of technology, engineering and maintenance at their network base stations in the UK.