Poland - Telecommunication tricks
Making it difficult for customers to read contracts before signing, providing misleading information about subscribers’ rights – are just few of the practices of two telecommunication companies questioned by the President of UOKiK.
Last year 84 percent of Poles had mobile phones*. When selecting service provider, we usually take into account the prices as well as promotions and discounts offered. It is also worthwhile to be aware that we ought to be provided with reliable information as to the characteristics of the service and our rights. To protect the weaker market participants, the Office constantly checks whether the contracts, regulations, information on websites and that provided by consultants are not against the law.
Currently the Office of Competition and Consumer Protection is conducting 30 proceedings regarding telecommunication companies, checking whether the operators provide reliable information on their products and services in advertising.
Recently, the President of the Office questioned the contracts used by P4 – the operator of Play network (two decisions) and PTK Centertel – the operator of Orange network (one decision). As a result of concluded proceedings, the operator of Play network committed to change the questioned clauses, while the operator of Orange network declined to do so. Consequently, the President of the Office imposed on the undertaking a fine exceeding PLN 16 million. Two out of three decisions issued are a result of the inspection performed last year, which involved verification of how mobile telephony operators concluded distance selling contracts for rendering communication services – i.e. via online shops or telesales facilities.
Do not sign a contract without having it read first
Suspicions of the Office were raised by the fact that PTK Centertel made it difficult for customers to read agreements when concluding a distance selling contract. When visiting a website or talking to a consultant, a consumer expressed his/her interest in the operator’s offer. Documents, amounting to several, up to a dozen of pages, including contract or annexe, regulations, pricelist were delivered to the consumer by a courier.
As it was revealed by the proceedings conducted by the Office of Competition and Consumer Protection, when being visited by courier, the customer could sign or resign from the contract, however, the customer could not keep the documents and possibly sign them later. In the opinion of the Office, the undertaking thus put the pressure on the customer to immediately sign, even a dissatisfying contract. In accordance with the law, prior to concluding a contract, the operator is obliged to provide consumer with all terms and conditions.
Early termination fee
Conclusion of a telecommunication contract is usually combined with purchase of a telephone at an attractive price. Receiving a discount for the telephone purchase at promotional price goes together with the conclusion of defined period contract. In the event of early termination – under law – the consumer is obliged to reimburse the operator for the discount given, however, the amount to be paid back by the consumer decreases proportionally to the value of the discount and the actual duration of the contract. UOKiK questioned the practice applied by Play network operator, which in the event of early termination charged fees higher than the original discount. The undertaking committed to change this practice, and inter alia, to reimburse consumers any overpayments.
Withdrawal from contract – fewer rights
The practice of providing misleading information on consumer rights was found by the Office as contrary to law. The practice regarded consumers concluding distance selling contracts (via online shops or telesales facilities). According to the findings of the Office, the operators of Play and Orange networks misinformed customers as to terms and conditions of free of charge withdrawal from the contract. In the event of services purchased by distant selling, one can withdraw from such a contract within 10 days since signing it. The prerequisite for taking advantage of such a privilege is a situation, where the operator has not started the provision of the service yet. Both Play and Orange misinformed consumers that as soon as they consented to activation of the service, they waived the right to withdraw from the contract free of charge. It is worth noting that only the commencement of service provision, and not merely consent thereto, results in loss of the right to withdraw from the contract free of charge.
The President of the Office imposed a fine on Orange network operator – PTK Centertel – amounting to PLN 16 260 300.The decision is not final as the company has lodged an appeal to the court.The operator of Play network – P4 – twice committed to change the questioned practices – the decisions are final and irrevocable
Extension of contract – misleading information
Moreover, the President of UOKiK questioned the practice applied by PTK Centertel, which involved misleading of consumers extending their contracts. The practice regards customers, who decided to continue their contracts upon signing documents delivered by courier. The operator informed subscribers that because they did not purchase a telephone, they were not entitled to withdraw from the amended terms and conditions of the contract (so called annexe to contract) within 10 days. Under existing regulations, when amending a distance selling contract, we are entitled to withdraw within 10 days from receiving of a written confirmation of the amendment to the contract terms and conditions, regardless of the fact whether we purchased a new telephone.
The President of the Office imposed a fine on Orange network operator – PTK Centertel – amounting to PLN 16 260 300.The decision is not final as the company has lodged an appeal to the court.The operator of Play network – P4 – twice committed to change the questioned practices – the decisions are final and irrevocable.
Rights of consumers concluding distance contracts are clearly set out in a guideprepared by the Office. Please also note that in the event of a dispute with an undertaking, consumers may take advantage of assistance provided by municipal or poviat consumer ombudsmen. Regarding telecommunication services, subscribers should seek assistance at the Office of Electronic Communications, which deals with solving disputes between consumers and undertakings by way of mediation as well as before the conciliation court operating by the President of the Office of Electronic Communications.
Read the press release.