Netherlands Consumer Authority fines five electronics companies for misleading consumers about guarantees
The Netherlands Consumer Authority (Consumentenautoriteit) has imposed fines on five electronics companies in the amount of EUR 90,000 per company for misleading consumers about their guarantee rights. The companies had provided inaccurate and misleading information to consumers about their rights after the manufacturer’s warranty period.
Pursuant to reports received by ConsuWijzer, the Netherlands Consumer Authority has investigated the operations of electronics companies in the Netherlands. Companies have been and are being investigated more closely, e.g. on communication about, and compliance with, guarantee regulations. The Consumer Protection Agency will continue doing this in the future.
For the moment, the following companies have been imposed a fine of EUR 90,000.
- BCC
- De Block
- De Harense Smid
- Mikro Electro
- Scheer & Foppen
The companies fined have lodged administrative appeal or appeal against the imposed fines.
Order with incremental penalty payments
A sixth company, Correct, has been imposed an order, subject to incremental penalty payments, to change its general terms and conditions as far as the mention of the guarantee rights is concerned. This order for incremental penalty payments amounted to EUR 10.000 per week, for each week in which Correct did not comply with the order, with a maximum of EUR 250.000. Since then, Correct has timely changed its general terms and condition.
Damages
Bernadette van Buchem, Director of the Netherlands Consumer Authority, notes: “Consumers have been inaccurately informed about their legal rights. As a result, they might have incurred damages, e.g. because they unnecessarily had to pay for repairs. At ConsuWijzer, we have received complaints in that regard.”
Guarantee investigation
Already from the start in 2007, the Netherlands Consumer Authority had the subject of ‘guarantees’ on its Agenda. It has actively informed consumers and entrepreneurs about the guarantee regulations. In addition, it has started investigations into the compliance with these regulations.
The investigation has revealed that the five fined companies have provided consumers with inaccurate or incomplete information about their rights concerning guarantees. The Netherlands Consumer Authority has concluded that these companies often informed consumers wrongly that they had to pay in full or partially for the repair of a faulty device and/or that they were not entitled to repairs or replacement free of charge after the manufacturer’s warranty period.
In accordance with the law, the consumer is in principle entitled to repairs or replacement free of charge if the device breaks down earlier than could reasonably be expected, on condition that the consumer used the device in a normal manner. It should not be ruled out that consumers did pay after all for repairs for which they should not have paid, due to the information provided by the companies.
Sector initiative
In the mean time, the sector organisation Uneto-VNI, of which the five fined companies are a member, has drafted a code of conduct about providing accurate information to the consumer about their guarantee rights. By means of this code, Uneto-VNI wants to bring uniformity in the interpretation of guarantee regulations and to apply those rules in a correct and uniform manner. The Netherlands Consumer Authority applauds this initiative.
Five years ConsuWijzer
In the next period, the Netherlands Consumer Authority will also closely monitor the reports received by ConsuWijzer about guarantees. In order to actively inform consumers about their guarantee rights and to assist them in getting redress, ConsuWijzer.nl offers targeted information and the checklist titled ‘back to the shop’. This month, ConsuWijzer has been in existence for five years and it will devote extra attention to the theme of ‘guarantee’ in the next week.