Play will refund customers' money. Decision of the Office of Competition and Consumer Protection. Will refund customers' money
As reported by the Office of Competition and Consumer Protection in a statement, in the Play network, late payment of the bill means loss of the discount and a higher subscription fee in the next month. “A discount constructed in this way acts as a legally prohibited contractual penalty for late payment,” the Office said.
Read also: About You store under the microscope of UKOiK. Customers wait for weeks for their money
“The promotion cannot have a double bottom”
The Office of Competition and Consumer Protection (UOKiK) explained that P4 – the operator of the Play network – tempts customers with a discount for e-invoices and timely payments, usually in the amount of PLN 5 per month. However, when a consumer misses a payment, they lose the discount and their next bill increases.
— The promotion cannot have a double bottom. The discount for e-invoice and timely payment is intended to be an incentive for modern settlements, but in practice it is a severe sanction for even a slight delay in paying the bill. Such a mechanism violates the law and harms consumers, Therefore, I imposed a fine on the Play network operator and the obligation to refund unduly collected fees – said the President of the Office of Competition and Consumer Protection, Tomasz Chróstny, quoted in the release.
In his opinion, the mechanism of losing the discount acts as a penalty for late payment of the bill. The provisions of the Civil Code – in particular Article 481, paragraph 1 and Article 483, paragraph 1 – clearly indicate that in the event of delay in payment, the consumer may be charged interest for the period of delay, but no additional sanctions may be imposed on him for the transfer arriving after the deadline. Taking away the discount and increasing the subscription fee is therefore contrary to these regulations and in practice constitutes a form of prohibited contractual penalty, he added.
Double consequences for the client
The office noted that P4 is one of the four largest mobile operators in Poland. For over six years, it has been applying a policy in which a delay in bill payment automatically results in the loss of the e-invoice discount and timely payments. To benefit from the discount, the customer must meet two conditions: agree to electronic invoices and pay bills on time. If you are late with the payment, you lose the discount in the next billing period – usually PLN 5 for each service.
“For example, when several telephone numbers or services under which this discount was granted are billed on a given account, the value of the lost discount for each number or service will be added to the invoice, which means that the subscription increases instead of decreasing. For example, by PLN 15 in the case of two telephone numbers and a fixed-line Internet service, or by PLN 25 if the invoice concerns three telephone numbers, a fixed-line Internet service and television,” the Office of Competition and Consumer Protection said.
He pointed out that in practice, the consumer suffers double consequences – in addition to the statutory interest for delay, he pays more in the next month for the subscription, which increases by the value of the lost discount. It also happened that the consumer lost the discount when the delay concerned other charges added to the same invoice – for example, installments for equipment, fees for additional services or premium-rate services.
Read also: PLN 500 each for injured T-Mobile customers
PLN 108 million fine
President Chróstny imposed a fine on P4 of over PLN 108.5 million and ordered them to discontinue the questioned practice. The company should also refund customers the money collected due to the loss of the e-invoice discount and timely payments. The refund will be available to those who concluded an agreement with such a discount after September 30, 2019, lost it due to a delay in payment and paid an increased bill amount. The refund will apply to both current and former customers, the Office said.
The Office of Competition and Consumer Protection added that after the decision of the President of the Office of Competition and Consumer Protection becomes final, the P4 company will have to inform consumers, among others: about the decision, their right to a refund of the fees charged, how to receive it and the deadline for claiming the amount due to them. If existing customers do not request a refund, their subscriber accounts will be automatically credited with the appropriate amount.
The decision is not final and the company has the right to appeal to the court.
