The High Court has ruled in favour of consumers by overturning Safaricom's controversial decision to introduce an expiry date for Bonga Points, a loyalty programme launched by the telecommunications giant.
This ruling follows a petition filed by Dr. Magare Gikenyi J Benjamin, a concerned subscriber, and supported by the Consumers Federation of Kenya (COFEK), among other interested parties.
Background of the dispute
On October 28, 2022, Safaricom announced that all Bonga Points older than three years would expire on January 1, 2023.
This move sparked uproar among concerned subscribers who feared losing the loyalty points they had accumulated over the years.
Magare, the petitioner, argued that this decision was an ambush and would disproportionately affect Kenyans, especially those in rural areas who had limited access to the internet and were less likely to be aware of the notice.
The petitioner further claimed that the introduction of the expiry date violated consumers' economic rights, as the points were a form of loyalty rewards that had already been earned.
The failure to consult with subscribers before making such a significant change was also deemed a breach of the constitutional right to be heard, as outlined in Article 47 of the Constitution of Kenya.
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Safaricom's defence
In its defence, Safaricom argued that the decision to implement an expiry date was a reasonable step to encourage the use of Bonga Points, as well as to reduce the costs of maintaining the programme.
The company claimed that it had given ample notice to subscribers and had made the changes in accordance with the terms and conditions of the Bonga Points programme, which customers voluntarily opted into.
Safaricom further stated that the introduction of expiry dates for loyalty points was a common practice in many business models and that the decision aimed at ensuring the programme's financial sustainability while offering meaningful incentives to customers.
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Court's ruling
The court, however, sided with the petitioners, stating that once Bonga Points were awarded, they became the property of the customers.
“The 1st respondent [Safaricom] has no right to change or introduce new terms on the points already earned, including an expiry date,” the court declared.
It further ruled that the notice issued by Safaricom on October 28, 2022, was a violation of consumers' legitimate expectations and economic interests.
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As a result, the court issued a declaration that Safaricom’s attempt to introduce expiry dates for Bonga Points was unconstitutional, null, and void. Additionally, an order of prohibition was issued, barring Safaricom from enforcing the expiry policy.