INVESTIGATION LAUNCHED FOR UNFAIR TRADE PRACTICES IN THE COMMUNICATIONS MARKET
PRESS RELEASE
PRESS RELEASE
TELEPHONY: THE AUTHORITY PROHIBITS TELECOM FROM CUTTING OFF SUBSCRIBERS FOR NONPAYMENT OF TELEPHONE BILLS FOR ELSACOM SATELLITE NUMBERS
This preemptive measure was adopted as part of the investigation into the telephone group comprising Elsacom and seven other companies, in relation to alleged unfair commercial practices to the detriment of hundreds of consumers. The investigation involved Globalstar Europe, Csinfo, Eutelia, Karupa, 10993 S.r.l, Teleunit and Voiceplus. Inspections have been conducted throughout Italy jointly with the Guardia di Finanza.
At its extraordinary meeting on 16 February 2008, the Authority resolved in the light of the results of the inspections of Telecom Italia, Globalstar Europe, Elsacom, Csinfo, Eutelia, Karupa, 10993 s.r.l, Teleunit and Voiceplus to order Telecom to cease the practice of cutting off the telephone lines of customers for nonpayment of satellite phone calls charged to them on their telephone bill, at the request of Elsacom, which the subscribers claim never to have made.
With regard to the alleged satellite calls charged to the complainant consumers, the initial investigations conducted throughout Italy on 14 February 2008 with the assistance of the Guardia di Finanza’s Special Market Protection Unit (Nucleo Speciale Tutela Mercati della Guardia di Finanza) appear to show that many of these telephone calls and/or links which Elsacom had requested Telecom Italia to bill as satellite calls were, in reality, normal landline calls.
This Competition Authority measure, which is one of the first cases implementing the new law governing unfair commercial practices, was adopted by the Consumer Protection Directorate General following receipt hundreds of complaints, most of which were filed through the special Call Centre instituted by the Authority, between the end of 2007 at the beginning of 2008. More particularly, the Authority deemed it appropriate to adopt preemptive measures, considering the serious nature of the offence, deemed to be an aggressive commercial practice, and the irremediable damage occasioned to consumers when their phones are cut off. In the complaints received at the offices of the Authority, the subscribers alleged that they had been charged for calls and/or connections to Elsacom international satellite numbers (such as 008818 and 008819) and premium rate non-geographic numbers (such as 199, 178, 899, and 892) which they had never made. According to these complaints, which the investigation has been put in place to verify, Telecom had failed to take any steps to prevent this phenomenon and indeed had demanded immediate payment in full, threatening subscribers that if they failed to pay, their telephone line would be cut off.
The investigation conducted by the Competition Authority is intended, among other things, to ascertain whether the billing of these calls was the result of companies other than Telecom Italia having installed “diallers” on the subscribers' hardware, without their knowledge, while they were surfing the Internet. "Diallers" are programmes managed by small companies, and used as a means of gaining access to premium rate services or services using premium rate call charges, which can also automatically reprogramme the subscribers' computers when used later to access the Internet, as a result of which calls are made without being specifically requested by the user.
Rome, 16 February 2008