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Logo-Sharing - accusations of the President of UOKiK
< poprzedni | następny > 08.11.2021
- President of the Office of Competition and Consumer Protection Tomasz Chróstny initiated proceedings against Logo-Sharing.
- Consumers were unaware that by paying the fare, they were agreeing to a subscription. Money was automatically charged from their accounts – e.g. PLN 22.10 per day.
- There is a penalty for violating the collective interests of consumers, of up to 10% of the turnover.
Logo-Sharing electric scooters are available, among other, in the Tri-City, Krynica Morska, or Kołobrzeg. The Office is approached by many people who were convinced they were paying for one ride while, in fact, money is regularly charged from their accounts. The amounts charged are PLN 20 or PLN 50 per day, PLN 100 per week or PLN 300 per month. To ride a scooter, consumers must install the app, accept the terms and conditions, provide their card number, and select a package (e.g. a package called "PLN 20/dayPASS. Start for free and get 40 minutes of riding/day"). By clicking on the "Activate" button, many people have unknowingly agreed to an automatic subscription. Consumers had limited access to information on how to unsubscribe, which means they might still be paying for it. In this way, the people notifying the UOKiK lost several hundred or even several thousand zlotys. This is how consumers described it to the Office:
"I would like to report a scooter rental scam in the city of Sopot. In July 2020, we rented a scooter and the Logo company from Sopot has been charging us PLN 22.10 even several times a day, until this day, amounting to over PLN 6700."
"I recently realized that after renting a Logo Sharing scooter once in the Tri-City, the company has regularly been charging my bank account, until this day. There was no contact with the rental company and ultimately no "points or minutes" to which should be entitled for each charge were granted. The money was charged twice a day or more, even after we left the Tri-City."
The relevant proceedings involve two companies: Logo-Sharing Sp. z o. o. Sp. k. in Sopot (which was the operator until 9 May 2021) and Logo-Sharing Group LLC in Tbilisi, Georgia, the current operator.
The allegations of the President of the Office of Competition and Consumer Protection concern the creation of an impression that the consumer buys a one-time scooter ride, while it is in fact an automatic paid subscription. The packages available in the application: "PLN 20/day PASS", "PLN100/week PASS", "PLN 300/month PASS" - mean, in fact, the frequency of charging the customer's account, not the time for which they can use the scooter. No clear indications appeared in the application to explain this to the customer. Moreover, Logo-Sharing does not clearly display the information that is required by law – about the price, the length of time for which the contract is concluded, or how to terminate it. The company did not provide any way to contact it – consumers can call a hotline where a recording of the answers to the most common questions is played. The failure to mark the order button with the words "order with obligation to pay" or equivalent is also questionable.
"From the complaints we receive, it appears that Logo-Sharing services are primarily used by tourists. Many do not notice that money is disappearing from their account until after their holiday. Had they been provided with reliable information that they were ordering an automatic subscription, they might not have used the services of this company. We will check it in the proceedings," says Tomasz Chróstny, President of UOKiK.
Proceedings for the infringement of the collective interests of consumers may result in a penalty of up to 10% of the entrepreneur's turnover.
The President of UOKiK notified the Public Prosecutor's Office about the actions of both companies. The case is being investigated by the Municipal Police Headquarters in Sopot. Individuals who believe they have been misled and caused to disadvantageously dispose of their own property may report to the police. Consumer ombudsmen also provide free assistance.
The President of the Office also notified mobile app stores such as AppStore, AppGallery and Google Play. The President of the Office of Competition and Consumer Protection described consumer problems in using the Logo Sharing application and the practices questioned in the proceedings. He pointed out that due to the high number of complaints and consumers' financial losses, it would be worthwhile for businesses to consider removing this app from their stores.
Customers whose money was charged from their accounts should consider ending their contract with the company – to do so, the subscription must be disabled in the app. The next step should be to file a complaint indicating that the money was collected unduly.
Consumer assistance:
Phone No. 801 440 220 or 22 290 89 16 – consumer helpline
Email: porady@dlakonsumentow.pl
Consumer Ombudsmen – in your city or county
Provincial Inspectors of Trade Inspection
Additional information for the media:
UOKiK Press Office
Pl. Powstańców Warszawy 1, 00-950 Warszawa, Poland
Phone +48 695 902 088, +48 22 55 60 246
E-mail: biuroprasowe@uokik.gov.pl
Twitter: @UOKiKgovPL
Pliki do pobrania
- Press release (118,49 KB, docx, 2021.11.08)
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