CA: Reducing and preventing consumer harm
In 2012, the Netherlands Consumer Authority (CA) primarily focused on the reduction and prevention of consumer harm. That is the key message from its 2012 Annual Report, which it released today. The CA used various instruments in order to end violations as swiftly as possible. The CA worked on 85 investigations (national) in 2012, of which 61 were terminated because the firms in question already ended their violation during the investigation. They did so after the CA had approached them about their violations. In addition, the CA strengthened the position of consumers by providing consumer information through its consumer information portal ConsuWijzer.nl, and by reminding firms of the rules that apply. ConsuWijzer was voted best government website of the year for the third time in a row. Finally, a fine was imposed on a firm in 2012.
Bernadette van Buchem, director of the CA, comments: ‘Depending on the cause of the consumer problem at hand, and on the attitude of the firm in question, we select the approach that is most likely to have success. Sometimes it means a fine or an order subject to periodic penalty payments is imposed on that firm. Other times, providing consumers and that firm with information resolves the problem faster or more effectively. Or sometimes, we do both. Whichever approach we choose, the key principle is that consumer harm is reduced.’
Results per focus area
The focus areas for 2012 that the CA had decided on were:
- misleading and aggressive telemarketing
- online shopping: delivery and payment problems
- untransparent prices in the travel industry
Misleading and aggressive telemarketing
The investigations into misleading and aggressive telemarketing practices have led to different interventions. The CA imposed a fine of EUR 150,000 on Hotel Group International for having sold subscriptions over the phone using misleading sales methods. The CA additionally imposed two orders subject to periodic penalty payments in order to prevent repeat violations. Futhermore, it ran an educational campaign on ConsuWijzer, aimed at empowering consumers, particularly seniors. The campaign´s tagline was: ´A polite no is also fine!´ The campaign included audio fragments with which seniors who sometimes find it difficult to end conversations because they want to remain polite were able to rehearse how to say ´no´ politely. A slight decline in the number of indications about misleading and aggressive customer-recruitment methods has been observed.
Online shopping: delivery and payment problems
By taking swift action against several online shops that caused delivery or payment problems, the CA was able to prevent further consumer harm. Online shops that promised the CA to change their behavior, will be closely watched in follow-up checks. If it turns out that not all problems have been solved, the CA may launch further investigations.
ConsuWijzer informs consumers about their rights. An interactive online tool, developed by ConsuWijzer, helps consumers recognize trustworthy online retailers. With this approach, the CA helps strengthen the position of consumers, particularly online.
Untransparent prices in the travel industry
In 2012, the CA looked into the presentation and composition of prices in the travel industry. Based on this analysis, the CA drew up a document in which the most important rules and their interpretation with regard to price transparency are explained. This document was discussed with various market participants. The CA will be publishing the document about prices in the travel industry in 2013. In addition, it will be checking whether companies comply with its principles. Furthermore, the CA sat down with three non-Dutch companies that offer airline tickets, because they pre-ticked checkboxes during the booking process, but have now stopped doing so.