Advertising campaigns by Cyfrowy Polsat and Polkomtel, concerned with smartDOM and Power LTE products respectively, were misleading. UOKiK has imposed, on both entrepreneurs, penalties equaling to the total of over PLN 40 million, and has ordered that relevant information on violating consumer rights be aired on television, and that the Office’s decisions be published on the companies’ websites.

The Office of Competition and Consumer Protection received a number of consumer-filed complaints about advertising campaigns concerned with smartDOM and Power LTE products. Both products are service packages offered by Cyfrowy Polsat and Polkomtel. The complaints focused on press, electronic media and billboard ads presented in the summer of 2014 and relying on the following slogan: Power LTE - LTE Internet with unlimited data. Later, before Christmas, the companies were airing TV commercials suggesting that the package of services may be purchased, along with a smartphone, tablet or a television set, for PLN 61 per month.

The consumers complained to UOKiK that they had been misled. The following examples were provided:

• Unfortunately, after approximately one month of using the Internet, it turned out that data limits were imposed. Once exceeded, the Internet connection was slowing down considerably.
• An additional, high payment has to be made for the tablet and the TV set, although the slogan used in the television commercial indicates that the payment covers everything.

The Office’s investigations of both companies’ practices have confirmed those signals. Under the actual terms of the Power LTE promotional campaign, both the amount of data available (data packages) and the speed of transfer were limited once the assigned value has been exceeded, even to as little as 32 kb/s. The consumers were also unable to purchase the package of telecommunications services with a smartphone, tablet or television set for the price of PLN 61 per month. In reality, the price offered covered the service only, with an additional payment required for the devices.

- We questioned the misleading statements included in the advertisements that covered both telecommunications services and electronic equipment. The practices of both companies could have generated financial losses on the part of those consumers who decided to conclude a contract based on the promotional terms of smartDOM and Power LTE campaigns. We found during our investigations that the actual terms of the promotional campaigns were different than those presented in the ads. Of course, an advertisement may follow various conventions, relying inter alia on such tools as simplifications or jokes. However, it must not be misleading as far as the products or services offered by an entrepreneur are concerned – explains Marek Niechciał, President of UOKiK.

The President of UOKiK has imposed, for violating the collective interests of consumers, contractual penalties amounting to PLN 40.4 million (PLN 30.7 million for Polkomtel and PLN 9.7 million for Cyfrowy Polsat).

Furthermore, the President of UOKiK has ordered Cyfrowy Polsat and Polkomtel to broadcast information on having misled their customers. Relevant announcements are to be aired on television, over the period of 30 days, 5 times a day, in the evening. The companies are obliged to make sure that each of such announcements lasts at least 15 seconds. The Office’s decisions are also to be published on the companies’ websites, with a link thereto in the upper section of the website’s homepage. The decisions are not final, and entrepreneurs have the right to file a court appeal.

Information for consumers

Consumers who have been misled by dishonest advertisements may take advantage of legal assistance offered free of charge. Advice is provided on the phone, at 801 440 220, or in writing, at porady@dlakonsumentow.pl. Additional assistance may also be obtained from consumer ombudsmen and trade inspection offices. If you are claiming your rights in court, please be reminded that final decisions of the President of the Office of Competition and Consumer Protection are deemed to serve as collateral estoppel in court proceedings. The above means that the findings of the President of UOKiK concerning practices that infringe collective consumer interests are binding upon courts. Courts are not required to open their own inquiry into the case (see ruling of the Supreme Court dated 23 April 2015, III SK 61/14).

Additional information for the media:

UOKiK Press Office
pl. Powstańców Warszawy 1, 00-950 Warszawa
Tel.: 22 55 60 111
E-mail: biuroprasowe@uokik.gov.pl
Twitter: @UOKiKgovPL