Q:
When I bought my new cellular phone, I did not notice at that time, but there was a provision in the small print that read, “If the network connection contract is cancelled within 185 days, payment of a 50,000 Yen is required.” Four months after I bought the
phone, I cancelled it and soon after I received a bill requesting a penalty payment of 50,000 Yen. I ignored the letter, and soon after that I received another bill from what looked like a debt collection company. Do I have to pay?
A:
In general, cellular phone contracts are split into two parts; a network connection contract with a phone provider (DoCoMo or AU for
example) and a hardware contract for the phone & its accessories. Usually, as well have having a monetary penalty for premature cancellation of the phone after purchase, there are also penalties for premature cancellation of family discount plans and long term
usage plans.
Phone providers have established moral & ethical sales guidelines with third party sales shops and vendors. When advice is given to the vendors as to how to make their product seem more attractive and less disadvantageous for the customer little publicity is given
to the penalty stipulations in the cellular contract. This is not illegal to do.
Even though you may not have been told about the penalty stipulations, you are in violation of the rule. If you are troubled by the sales ethics of the vendor or phone provider then you should voice a complaint to their customer service department. The bottom line
is though, always check and read the small print before signing a contract.
