Returning money to consumers? Offering free access to a new TV channel? Even making it possible to recoup insurance premiums? These are just a few examples of public compensation companies in Poland have employed to repair the consequences of infringing consumer interests.

In issuing a decision in a case of practices infringing collective consumer interests, UOKiK can, beyond imposing a fine, lay out requirements the company must follow to remedy the consequences of the infringement. UOKiK may also accept a commitment from the company itself to take steps to repair the damage.

“Having the financial penalties UOKiK imposes reduced by the courts sends an important message. On the one hand, it affects our policy of imposing penalties. But it also becomes a prerequisite to seeking other instruments of a suppressive character. One such instrument the Office has recently started using is public compensation, which not only plays the role of deterrent, because it requires the entrepreneur to bear the costs, but also means that consumers benefit directly from our decisions” said UOKiK Vice-President Dorota Karczewska.

The past year has seen UOKiK issue a number of decisions requiring companies to compensate consumers for infringing their collective interests, particularly by making unilateral decisions about contract terms. The most recent required T-Mobile to pay customers 65 PLN [14,5 EUR] for informing them it was raising monthly charges by 5 PLN [1,1 EUR]. The misstep came at a price, as the Authority also fined the provider 4,5 million PLN [1,01 million EUR].

In a similar case UOKiK issued a decision concerning Canal+’s unilateral decision to raise rates. UOKiK accepted the company’s commitment to offer one of three forms of free service to consumers who intended to stick with the company. Those who opted to drop their monthly contract received an option for a new agreement with special conditions or a cash refund.

The financial industry has not been immune to the need for such measures, either. In December 2015 UOKiK called into question an Alior Bank advertisement enticing consumers with collateral-free loans, while the bank’s regulations at the same time required a collateral insurance contract. UOKiK obliged the company to issue a letter informing clients of the Authority’s decision against it, as well as their right to resign from the insurance contract and demand reimbursement of the total premium the bank had charged.

For its part, Wonga.pl ran advertisements containing information about loans that could be taken to purchase products including household goods, winter clothes and other consumer goods. However, the loan terms were illegible due to the size of the font used and the short amount of time the information appeared in the ad. UOKiK’s decision required the online financial services provider to return the cost of the loan to all consumers who entered into an agreement with the company while the commercial was airing.  

In each of these cases, the company was obliged to inform the public of its infringement, particularly by posting UOKiK’s decision on its website, though in some cases also by letter or, in Alior’s case, by also physically posting at its branches the fact it had misled clients.

Additional information for the media:

Press Office, UOKiK
Pl. Powstańców Warszawy 1, 00-950 Warsaw
Phone.: +48 22 827 28 92, +48 22 55 60 314, +48 22 55 60 430
E-mail: [SCODE]Yml1cm9wcmFzb3dlQHVva2lrLmdvdi5wbA==[ECODE]

Twitter: @UOKiKgovPL