Monday, February 6, 2017

Orange will pay 30 million fine – whether the expenses incurred by customers? – Guest Sunday

On the question whether as a result of imposition of penalties for fraudulent actions against customers, the operator can raise prices for services to compensate the loss, meets the press service of the UOKiK.

the Office for Protection of Competition and Consumers (UOKiK) imposed on the telecommunications provider Orange Polska a fine in the amount of 30 million UAH, and also order compensation of the public in relation to customers affected by unauthorized practice of automatic renewal of contracts to subscribers without their prior consent and the imposition of high penalties to customers who with this automatic renewal contract, I decided to leave.

In situations where customers up to the end of the contract did not take any action, Orange to learn is by default consent to the automatic extension of the term of the contract: 6 months in the case of Adsl and 12 months or 24 months in case of other services. Not allowed actions had a lasting character, which influenced the UOKiK decision on the punishment.

the Overwhelming reaction UOKiK to protect the interests of consumers is, however, quite natural to wonder whether punished the provider does not decide to “win back losses”, increasing the cost of services. Whether the actual cost of the fines are not paid consumers and whether there are mechanisms to prevent such practices, we asked the Press service of the UOKiK:

we have No such mechanism working auto, but we monitor it, what is happening in the market and we have the right to intervene in case of revealing of actions which would erode the consumer. If the market environment is competitive, it’s input margin, which is not the result of any game on the market is difficult.

it is Worth noting that without our decisions removal of consequences relevant to injured consumers on such a scale would not be possible.

Gennady Cieloch

the Press service of the UOKiK

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