The Office for Competition and Consumer Protection (UOKiK) has made serious allegations against telecommunications operators Netia and P4 (Play). The case concerns the way in which prices of services are presented, which take into account optional rebates in advertising and sales conversations. According to the UOKiK, this practice can mislead consumers. If the charges are confirmed, the companies are liable to a punishment of up to 10% of yearly turnover.
Unclear prices and discount conditions
According to UOKiK, Netia and Play in their marketing activities present services prices that include discounts at the level PLN 5 per month for consent to the processing of marketing data and the choice of invoice in electronic form. The problem is that in many cases consumers may not be aware that the price depends on these additional conditions.
- Advertising and interviews with consultants they frequently present discounts as a standard price, without clearly explaining what criteria must be met in order to get a promotional rate.
- Customers who opt for an offer but then quit e-invoice or marketing approvals must pay by 10 zł higher monthly subscription than initially declared.
UOKiK: Consumers have the right to complete information
President of the UOKiK Tomasz Chróstny in the communication pointed out that the way Netia and Play presented prices is incompatible with consumer expectations:
"Consumers have the right to anticipate that the price given in advertisements or by a telephone consultant is the price they will actually pay. If it is subject to additional conditions, it must be clearly communicated immediately.”
According to UOKiK, entrepreneurs utilizing specified practices can mislead customers by presenting offers as more attractive than they are in reality.
Potential penalties for Netia and Play
If the allegations against Netia and Play are confirmed, both companies may be fined as far as up to 10% of yearly turnover. In practice this means possible penalties counted in millions of zlotys. specified actions aim to defend consumers from unfair commercial practices and to make the offer of telecommunications service more transparent.
How do you defend yourself against hidden costs?
Telecommunication marketplace experts advise consumers to carefully analyse offers, peculiarly in the case of promotions which seem to be besides favourable. Here are any applicable tips:
- Read the terms and conditions – The rules frequently contain detailed information about the conditions for obtaining discounts and their consequences.
- Ask questions to consultants – If you have doubts about the prices given by the seller, make certain you know all the details.
- Monitor Contract Changes – Companies can make changes during the duration of the contract, so it is worth following correspondence from the operator.
Example for the telecommunications industry
The Netia and Play case may be a precedent that will force on another operators greater transparency in the presentation of prices and terms of offers. The introduction of clear rules on marketing communication will not only increase consumer confidence, but will besides minimise the hazard of UOKiK proceedings.
The allegations made by UOKiK to Netia and Play operators emphasize the importance of fairness in communication with consumers. The indication of the prices of services in an illegible way or subject to additional approvals and conditions raises doubts as to the ethical nature of specified practices. Any penalties may not only be severe financially, but besides affect the image of both companies.
It is worth remembering that specified activities of the UOKiK primarily service the protection of consumers who have the right to complete information on the costs of the services they use.
Continued here:
Netia and Play with allegations from the UOKiK – they are facing advanced penalties
