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More than pln 22 million fine for Vectra for illegal increase of the subcription fees
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- Vectra has unilaterally, without a legal basis, amended the provisions of the agreement for indefinite time and then has illegally increased the fees for the Internet and television.
- President of the Office Tomasz Chróstny has issued a decision imposing a fine on the company in excess of PLN 22 million.
- Consumers are to be reimbursed part of the subscription paid.
President of UOKiK has repeatedly indicated that significant terms and conditions of an ongoing agreement concluded for an indefinite time may be amended only if the agreement expressly so provides. In such agreements, any amendments should be made on the basis of a correct modification clause which clarifies what terms of the agreement and in what circumstances may be amended.
Meanwhile, Vectra unilaterally informed consumers between 2019 and 2020, without the required legal basis, of the addition of a modification clause to the contracts without it and being already in progress, amending thereby the general terms and conditions of the agreement. Subsequently, for the following years, based on this illegal modification clause, it suggested to customers a unilateral increase in subscription fees by PLN 5 per month for each telecommunication service - television or Internet access (PLN 60 or PLN 120 per year). In doing so, the entrepreneur set them a time limit within which they might not agree to the amendments and might terminate the services provided. If they did not do so, Vectra levied unilaterally increased charges.
President of UOKiK Tomasz Chróstny pressed charges to the company in November 2021. He has now issued the decision that both the modification clause and subsequent increases in subscription fees have not been effectively introduced into the existing agreements as this has taken place without a legal basis which has misled consumers. Both these activities and the subsequent charging of subscription fees at an increased level constitute a practice that violates collective interests of consumers. Vectra was subject to a fine of over PLN 22 million (PLN 22,231,676), an order to discontinue the practice and rectify its consequences. Once the decision has become final, the company will be obliged to reimburse consumers for part of the subscription fees levied illegally for the period in which they were charged.
- The entrepreneur should observe the agreement concluded with the consumer both in terms of content and terms and conditions of provision of services. The Vectra agreements concluded for indefinite time did not have a clause which would define the criteria and scope of possible amendments. It is necessary for consumers to be able to predict in what situations unilateral amendments may be introduced, e.g. when the price of the service may increase” - says Tomasz Chróstny, President of UOKiK.
If the contractual terms do not contain a correct modification clause and the entrepreneur intends to amend the contracts for indefinite time, an arrangement may be concluded between the parties on a partnership basis, in fully voluntary terms, with no need to terminate the agreement. This was not the case with Vectra, and the entrepreneur took advantage of his stronger position and arbitrarily imposed on customers the modification clause itself and then the increase in subscription fees.
As soon as the decision has become final, Vectra must inform consumers, among others, of their right to compensation in the form of a refund of subscription fees in respect of the increase introduced by the modification clause throughout its collection period.
President of the Office reminds you that entrepreneurs are not free to amend the contracts concluded, and he has already emphasised this on numerous occasions in the decisions issued with regard to entrepreneurs in the telecommunications sector. Incorrectly introduced changes to contracts were also questioned in the financial, insurance, e-payments, or e-commerce industry. There are also ongoing investigations into the indexation clauses introduced by mobile operators in contracts concluded for definite time and the investigation of the market in the development industry in this regard.
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Attached files
- Press release (129,53 KB, docx, 2023.01.25)
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