The Netherlands - Consumer Authority fines provider of SMS services

The Netherlands Consumer Authority is imposing fines amounting to a total of EUR 1,190,000 (one-million-one-hundred-and-ninety-thousand euro) on Artiq Mobile B.V. and Blinck International B.V. - trading under the name of Celldorado - for the large-scale provision of misleading SMS services to consumers. The Consumer Authority is also imposing various orders for incremental penalty payments on the company, in order to ensure that it does stop the misleading practices in question. The SMS services (games and wallpapers) in question were brought to the attention of consumers via the Internet and TV. Consumers believed that they were doing a one-off test or game but had actually subscribed to an SMS service, without intending or wanting to do so. The misleading Internet and TV publicity meant that the subscription element was concealed.

Bernadette van Buchem, Director of the Consumer Authority: "Efforts to tackle misleading SMS services are back on our agenda this year, since many consumers - both younger and older consumers - are still being duped by these practices. On its website, Celldorado claims that it observes the SMS Service Provision Code of Conduct (SMS Gedragscode), but it has emerged that this is not in every aspect the case. This decision is intended to send a clear message, both to other companies offering these services and to consumers."

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