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Vectra and inflation clauses - allegations by President of UOKIK
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- Vectra is increasing its customers' subscription fees, citing the inflation rate.
- President of UOKiK has questioned the provisions on unilateral changes to contracts.
- If the allegations are confirmed, the fine could be up to 10 percent of turnover.
The Office of Competition and Consumer Protection has received numerous complaints related to the practices of mobile phone operator Vectra since, in November 2022, it introduced clauses in its contracts with consumers authorising changes in telecommunications service fees depending on the economic standing. The President of UOKiK has been conducting preliminary investigation in the case. Having analysed the materials, he has charged the company with using prohibited provisions.
Authority without justification
Vectra has granted itself the authority to unilaterally change the contracts in force with consumers - to introduce increases, as well as new, previously unforeseen, fees. The provisions used by the company are ambiguous and unclear to consumers. Vectra does not sufficiently specify the scope of possible changes and the situations in which they may occur, making it impossible to verify the criteria for its actions. What is more, the way the text is edited and organized makes it difficult for consumers to read the basic terms of the contract and make an informed decision about choosing this operator's services.
The grounds authorizing contract modification include general wording and open-ended catalogs of circumstances, such as, for example, "an increase in public and legal charges," "an increase in costs or expenses related to the service provided," "a significant expansion or improvement in the functionality of the services provided," or "the creation of opportunities to take advantage of new products, services, applications or functionality." Vectra has also provided for the power to change prices in the event of changes in the inflation rate. As President of UOKiK has found, Vectra, citing this very rate, has been increasing its customers' subscription fees. The effect of such actions may be to shift all responsibility for the changing economic standing onto consumers. Inflation-related provisions authorise Vectra to change prices with any increase in inflation, including when the consumer price index is below the forecast level. At the same time, the terms of the contract do not provide restrictions on the possibility of price changes shortly after the conclusion of the contract.
- Inflation adjustment clauses, if they are to be introduced into the contracts, should safeguard both parties and must not be used only for the benefit of entrepreneurs. It is also a priority that consumers know what the rules are for providing services under a term contract and are aware of the price they will pay. Entrepreneurs may not unilaterally change essential elements of an ongoing commitment in term contracts - says President of UOKiK, Tomasz Chróstny.
Meanwhile, Vectra's customers complain that "a month after signing this contract, the company increases the service fees for the vast majority of its term by an amount unknown at the time of signing, making the offer less competitive." It further reads as follows: "I did not think that the increase could occur due to the inflation rate during the period in which this contract did not apply to me." In another complaint, a consumer points out: "It is interesting that 3 weeks after the contract was signed, the company triggered the clause and raised prices by the value of inflation for 2022." Someone else asks: "Why couldn't the company prepare an offer taking into account the projected inflation for last year without such 'games'?"
- Service price is the element that needs to be clearly and comprehensibly communicated at the time of signing the contract and the consequences of the commitment should under all circumstances be foreseeable for the consumer. They are among the basic criteria for the decision to conclude a contract with an entrepreneur- adds President of UOKiK, Tomasz Chróstny.
Changes in the price of the service in the case of a contract concluded for an indefinite time are subject to the relevant provisions provided for before the conclusion of the contract. At the same time, consumers should have the right to opt out in such situations without incurring additional financial charges. On the other hand, fixed-term contracts in general should not be subject to unilateral changes made by the trader to their essential elements - for example, the price.
If the allegations of illegal provisions are confirmed, Vectra faces a penalty of up to 10% of its turnover.
In the case of inflation clauses, President of UOKiK has been conducting preliminary investigation against operators: Orange Polska, P4, T-Mobile Polska and Multimedia Polska, and has been monitoring other sectors of the economy - a market research of the real estate development industry.
Additional information for the media:
UOKiK Press Office
pl. Powstańców Warszawy 1, 00-950 Warszawa, Poland
Phone: 22 55 60 246
Email: [SCODE]Yml1cm9wcmFzb3dlQHVva2lrLmdvdi5wbA==[ECODE]
X: @UOKiKgovPL
Instagram: @uokikgovpl
Consumer Support:
Consumer Helpline: 801 440 220 or 222 66 76 76
E-mail: [SCODE]cG9yYWR5QGRsYWtvbnN1bWVudG93LnBs[ECODE]
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Attached files
- Press release (86,98 KB, docx, 2024.02.02)
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Office of Competition and Consumer Protection
Plac Powstańców Warszawy 1
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Phone: +48 22 55 60 800
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