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Court fines MTN N5m for exploiting user through unsolicited tunes

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The Court of Appeal sitting in Owerri, Imo State, has ordered MTN Nigeria to pay ₦5 million in damages to Barrister Achunulo Godwin for subjecting him to unauthorized caller tunes and airtime deductions without his consent.

According to court records, the subscriber had activated a gospel song titled “I Have a Dream” as his caller tune. However, MTN allegedly replaced it with commercial advertisements that promoted various products and services, deducting ₦50 monthly from his balance over several months without his approval.

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In response, Barrister Godwin took legal action at the High Court, demanding a full breakdown of the revenue generated from the unsolicited services, a formal apology, and a refund of all deductions dating back to December 2010. The High Court had initially awarded him over ₦10 million in damages.

MTN, however, appealed the decision, claiming that the evidence presented—particularly the SMS communications—did not directly link them to the unauthorized service, blaming third-party platforms for the intrusion.

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In the appellate ruling, Justice Ntong Ntong upheld the findings that MTN had indeed engaged in exploitative practices but reduced the damages to ₦5 million, noting that only ₦150—equivalent to three months of deductions—was actually proven by the respondent. Any award beyond that, the court ruled, was unjustified.

The judge condemned the practice of foisting unsolicited services on subscribers and stressed the need for telecom providers to seek clear, informed consent before activating any paid service. He also emphasized that while consumer exploitation must be curbed, judicial decisions must strictly adhere to legal and evidential standards.

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The appellate court also struck down the order for a public apology and rejected a key document used in the lower court for lack of proper service evidence.

The judgment is widely regarded as a milestone victory for consumer rights in Nigeria and a stern warning against exploitative telecom practices.

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