The activities undertaken by the Office of Competition and Consumer Protection since the beginning of 2009 have resulted in 16 decisions concerning developers, including the last one, which imposes a fine of nearly one million PLN. Most often the problem consists in applying prohibited clauses in contracts.

Control of the standard contracts and elimination of prohibited clauses from such agreements is UOKiK's basic instrument used to protect collective consumer interests on the market of developer services. The proceedings may be, inter alia, solved by making an obligation by the entrepreneur to voluntarily change the questioned provisions in line with the rules and within a deadline set by the President of the Office. Seven out of 16 decisions issued since the beginning of 2009 were finalised this way, namely: Dom-Invest from Wrocław, Inwest-Hel from Puck, Kaja Nieruchomości from Gdańsk, Eko-Homes from Sopot, Poldom from Pruszcz Gdański, Steed from Szczecin and Vega Invest from Wejherowo.

The decision of November 2008 issued in the case of the J.W. Construction constitutes an example of an obligation made by the developer to change law-infringing activities. The developer has been using provisions, which were entered into the Register of Prohibited Clauses and confirmed by the court decision. These concerned, inter alia, limitations to the entrepreneurs’ liability that consisted in reserving the right to change the deadline of handing over a flat without specifying all the circumstances for the delay. Moreover, the company set grossly excessive amounts for the contract termination: The party, due to which fault the contract was terminated shall pay to the other party an amount equivalent to 5% of the total gross price of the contract object for failure to perform the obligation set out therein. The company made an obligation to voluntarily change the clauses contested by UOKiK, and to prepare annexes within the scope to the previously concluded agreements until March this year.

At the beginning of November, the proceedings were completed, which aimed at checking whether the developer has met this obligation. Unfortunately, according to UOKiK, three out of four clauses were not changed in line with the prior arrangements between the Office and the company. Consequently, for failure to implement this decision, the President of the Office imposed a fine on J.W. Construction in the amount of PLN 997,928 (EUR 239,173.76). Maximum financial sanction in such a case is EUR 10 thousand per each day of delay.

The decision is not final and the entrepreneur may lodge an appeal to the Court of Competition and Consumer Protection.

At present, two more proceedings against J.W. Construction are carried out by the Office. The first relates to using in notarial contracts clauses that force the consumer to waive claims for undue performance of the preliminary agreement. Within the second proceedings, UOKiK examines if the entrepreneur violated the Act on counteracting unfair market practices by implying that the President of the Office accepted the content of the annexes sent by the company to the consumers. If the charges are confirmed, the President of UOKiK may impose a fine on the undertaking in the amount of 10% of the preceding year's revenue.

At each stage of the dispute with the entrepreneur, including court proceedings, the consumer may ask the poviat or municipal consumer ombudsmen, as well as the consumers’ organizations for free assistance. Their addresses are placed on the website of the Office of Competition and Consumer Protection. Free advice is also provided under the telephone line 0 800 800 008. Consumer counselling in Poland is financed, inter alia, from the budget of UOKiK.

Additional information:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańców Warszawy 1, 00-950 Warsaw, Poland
Tel. (+48 22) 827 28 92, 55 60 106, 55 60 430
faks (+48 22) 826 11 86
E-mail: [SCODE]bWFsZ29yemF0YS5jaWVsb2NoQHVva2lrLmdvdi5wbA==[ECODE]