INTERNET: FORCIBLE DEBT RECOVERY STOPPED FOR H3G'S "TRE.DATI ABBONAMENTO" PLAN
PRESS RELEASE
PRESS RELEASE
MOBILE INTERNET: ANTITRUST AUTHORITY ORDERS H3G TO SUSPEND DEBT COLLECTION ON INFLATED PHONE BILLS
Recovery by the operator halted for amounts contested by consumers for web browsing. Investigation into unfair commercial practices was begun following a number of complaints over bills of up to Euro 10,000.
The Italian Competition Authority, at its meeting on 3 July 2008, ordered H3G to suspend its forcible debt recovery regarding internet traffic charges contested by users. The decision was made in the context of an investigation launched to determine whether this operator of telephone services had used unfair commercial practices regarding tariff plans for internet use.
According to numerous complaints, users who had subscribed to the “Tre.Dati Abbonamento” tariff plan with an “ADSM USB Modem” received huge bills of up to almost Euro 10,000, whereas such enormous costs were not to be expected based on the conditions in the offer.
Specifically, the Authority must now determine whether H3G:
- adequately informed consumers that, when the threshold of 5 GB/month is exceeded, the measured usage charge becomes extremely expensive and increases further when the connection is made via GPRS roaming;
- ensured that users were able to monitor when they exceeded that threshold;
- allowed traffic data beyond the threshold to be counted and checked. Initial indications are that the software provided to users does not guarantee that the number of bytes displayed during Internet use correspond with the bytes used for billing;
- adequately informed consumers regarding the zones not covered by the H3G network.
The Authority's ruling means that H3G must suspend, as an interim measure, all direct procedures against users for recovery of sums relating to data traffic over the threshold of 5 GB/month and of sums relating to data traffic using GPRS roaming. The suspension covers usage billed in the period 21 September 2007 – 31 May 2008 (for subsequent months the company took corrective steps which should ensure that the phenomenon is not repeated), so long as the billings were the subject of complaints lodged by the users with the company or with a public authority.
Rome, 19 July 2008