Poland - Canal+ Cyfrowy in breach of the law

The way of notifying customers about amendments to the agreement, including those related to licence fee increase, did not guarantee that the information would reach the customers, as decided the President of the Office of Competition and Consumer Protection. A fine amounting to almost PLN 3.6 billion has been imposed on Canal+Cyfrowy for unfair market practices.

The Act on combating unfair commercial practices defines an average consumer as a person who is adequately informed, attentive and careful. Moreover, it considers trader’s action as misleading if, in any way, it causes, or may cause an average consumer to make a transactional decision, which he/she would not have made otherwise. This was the case of Canal+ Cyfrowy.

Proceedings in this respect had been initiated by the President of UOKiK after consumer complaints in November 2009. It revealed that the company notified part of its customers about the amendments to e.g. the licence fee agreement and to the regulations only by means of an information included in the „PLUS+” magazine it sent to all customers (No. 27 May-June 2009). The President of the Office called the method and form of communication of this information in question. Consumers could not have possibly expect that on the last two pages of an infotainment magazine they could find important news concerning higher licence fees for Canal+ services. Amendment of such an important term of contract as the price entitles the consumer to withdraw from the agreement. However, in order to do that, the consumer must be aware of the planned changes.

In the opinion of the Office, notification of customers about the new contractual terms in a company magazine did not guarantee that the customer would learn such information. According to the Office, a form that guarantees such an effect may include e.g. sending information about amendments in a separate letter to each consumer or attachment of a cover letter informing about the new terms of contract to the magazine. Communicating the news in the magazine may be only considered supplementary to the mandatory disclosure measures.

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