3 relents on business clawbacks

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3 performed an 11th-hour about-turn on its controversial business clawbacks after angry exchanges with dealer principals.

Last month, dealers criticised 3 after it said it would reclaim commissions from dealers at any point for business contracts that do not last their full term.

Dealers were told they would be clawed back even if business customers exited their contracts in the last few months. 3 was met with an outcry from the dealer market.

It issued a bulletin last week via its distributor partners which said it had withdrawn the proposal with immediate effect.

Only lines disconnected within 180 days of connection will be liable for full clawback and that full commissions will be repaid if correct proofs are provided within two weeks of clawback.

Dealers labelled the original 3 proposal as “unworkable, unrealistic and unfair”.

Remarked one dealer: “The original terms were onerous in the extreme; enough to turn me away from 3 for business connections. It is a relief it has come around.”

A 3 Business spokesperson said: “Apart from customers who leave within the 14-day cooling off period, we only recover commission from a dealer in the event of a disconnection due to bad debt, or if an account is suspended because of fraudulent activity. Even this policy is usually only applied within the first six months of contract life.”

3’s indirect units, led by sales and marketing boss Marc Allera (pictured), have been attempting to build 3’s reputation in the SME market this year, but its heavy commissions have been offset by onerous clawback terms.

 

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