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Consumer Authority: hands full with national and international violations of consumer law

In the first half of 2009, the Consumer Authority launched a large number of investigations into national and international violations of consumer rights. The enforcement authority announced this today in its half-yearly report. The violations observed by the enforcement authority include violations in the four priority areas for the 2009 Agenda: telemarketing, sales demonstrations, SMS services and guarantee & conformity. The authority also received a large number of signals from the European network of consumer enforcement authorities. Most of these are from Belgium, France, England and Sweden and relate to websites that fail to comply with the statutory information requirement.  Marije Hulshof, Director of the Consumer Authority: "There are still far too many cases of companies that are using incomplete or misleading information to persuade consumers to make purchases that they wouldn't have made if they had known the whole story. Armed with the new, stricter rules from the unfair commercial practices act, we are able to tackle these practices better. Even in situations where foreign authorities request us to take action against Dutch companies that are short-changing European consumers."

SMS services

In the first half of 2009, the Consumer Authority announced a sanction decision against OX-2 International (a fine of € 85,000) and Smart Media Services B.V. (a fine of € 118,750). Both fines were imposed for the misleading way in which they persuaded consumers to enter into SMS contracts. The enforcement authority also submitted nine complaints about the misleading advertisement of SMS services to the SMS Code of Conduct Foundation. This resulted in modifications to the communications in question. The SMS code of conduct, a form of self-regulation that entered into force a year ago, will be evaluated this summer. Added to this, further to previous complaints submitted by the Consumer Authority, three appeals cases were finalised with the Advertising Code Committee (RCC). The RCC ruled again that advertising for SMS services had been misleading. At the beginning of February, the Consumer Authority issued an extra warning via the media about misleading communications for SMS services based on a Valentines Day theme.

Sales demonstrations

The Consumer Authority launched investigations into misleading and aggressive sales demonstrations. These are focusing primarily on coach day trips for which participants are given a product presentation and on sales presentations for holiday club membership. Besides investigations, the Consumer Authority also launched an information campaign via ConsuWijzer to warn holidaymakers about misleading sales by holiday clubs. In the campaign, consumers were urged to report their complaints to ConsuWijzer. The Consumer Authority will continue its investigation activities in this field in the second half of the year. It will work with enforcement authorities from other EU member states for this purpose.

Guarantees & conformity

In 2009, the Consumer Authority continued its activities within the computer industry. In April, the enforcement authority published the first results of its research into the benefit of buying an additional guarantee. In many cases, it is found that extra guarantees have little more to offer than the statutory rights that consumers already have. Follow-up investigations have been launched into a number of companies.

Besides enforcement investigations and enforcement, the Consumer Authority worked with the Central Industrial Board for Retail Trades to develop a free digital training course for retailers, which enables them to enhance their knowledge on rules and regulations on guarantees.

Telemarketing

The Consumer Authority performs enforcement investigations into misleading and aggressive telemarketing. The Consumer Authority also ensures that information provision occurs correctly, pursuant to the Distance Selling Act [Wet Koop op Afstand]. In this context, the enforcement authority announced two sanction decisions In the first half of 2009, one against the telecoms company Tele2 (a fine of € 70,000) and one against Pretium Telecom (a fine of € 87,000). These fines were imposed for the way in which these providers used telemarketing to gain (new) customers. Both companies lodged administrative appeals against these decisions. In April, the authority launched a publicity campaign designed to inform consumers, older consumers in particular, about how to respond to sales calls.

International

In 2008, the Consumer Authority received 13 enforcement requests, 16 information requests and 10 signals via the network of European consumer enforcement authorities. Eleven enforcement requests have now been dealt with. Most of these were from Belgium, France, England and Sweden. The majority related to websites that rectified their information provision practices after a warning from the authority. The Consumer Authority is also part of an international 'sweep', a joint search operation on the Internet into information provision by webshops. The European results of this sweep will be announced in September.

Other matters

In April, the Consumer Authority lodged its first civil case with the court. This case was decided in its favour. The case in question involved proceedings against the travel provider Gold Travel B.V., which was failing to comply with the statutory rules on guarantee provision when providing package travels. The Consumer Authority is expected to institute another 10 proceedings against travel providers with the court.

In February, the authority announced the results of an investigation at Benelux level into the (one-sided) general terms and conditions being used in the furniture and kitchen industry. The enforcement authority addressed 10 chains with a total of 300 branches about their unreasonable general terms and conditions. This action prompted all of these chains to modify their terms and conditions. The Consumer Authority also received an undertaking from Grando Retail B.V. that it will act in accordance with the guidelines issued by the foundation for the collective management of shopping centres (CBW) in relation to the subject of deposits from now on.

ConsuWijzer

Questions and complaints about guarantees and conformity still have number one priority with ConsuWijzer. In the first half year of 2009, the enforcement authority received more than 9,000 reports about problems with product guarantees. Many of these questions and complaints relate to durable consumer goods, such as electronics and white goods. Other subjects that fall within the enforcement remit of the Consumer Authority and about which ConsuWijzer received a relatively large number of reports are SMS services and telemarketing.