MTN Ordered to Pay Customer N15 Million Over Unlawful Airtime Deductions

The Court of Appeal in Abuja has directed MTN Nigeria to pay N15 million in damages to a customer over unlawful airtime deductions tied to unsolicited services. The decision, delivered by a unanimous three-member panel on Friday, labeled the deductions as fraudulent and criticized MTN’s auto-renewal of services not subscribed to by the complainant.

The court ruled that MTN’s actions breached subscribers’ privacy rights under Section 37 of the 1999 Constitution and violated Regulation 28 of the Consumer Code of Practice Regulations. The judgment stemmed from an appeal filed by Ezugwu Anene, who alleged that between 2016 and 2018, he was inundated with over 244 unsolicited text messages for a service called “weekly guidance and counselling,” which he had never requested. Each message resulted in a deduction of N20 from his airtime.

Anene also reported that MTN imposed a caller tune service on his mobile line and continued to deduct charges despite his complaints to MTN’s Abuja office and efforts to opt-out using the designated “Do Not Disturb” code, 2442.

The appellate court sided with Anene, acknowledging the anxiety caused by the unsolicited messages and suggesting that MTN likely profited significantly from the practice. The court noted that if MTN sent similar unsolicited messages to 10 million subscribers, the company could have generated over a trillion naira unlawfully.

The N15 million judgment overturned an earlier high court ruling, which had awarded Anene N300,000 in general damages. The appellate court recognized Anene’s efforts to resolve the issue with MTN and agreed that the deductions persisted despite his use of the DND option.

MTN, however, maintained that Anene had subscribed to the services in question. During earlier proceedings at the high court in September 2021, MTN’s representative, Emmanuel Iteade, argued that the terms and conditions for its prepaid services are clearly outlined in its SIM starter kits. He claimed the services and deductions were authorized by the claimant.

Anene had initially sought N200 million in damages, citing the distress caused by the unsolicited messages and the impact on his personal and professional life. He said strange calls and intrusive texts disrupted important business communications and caused embarrassment.

While MTN’s legal team argued that deductions amounted to only N14,000 and the earlier N300,000 award was overly generous, the appellate court found otherwise. It concluded that MTN’s actions constituted a serious breach of consumer rights, and the N15 million compensation was warranted.