AGCM

PRESS RELEASE

HOUSEHOLD APPLIANCE REPAIRS: ANTITRUST AUTHORITY FINES EIGHT COMPANIES THAT DECEIVED CONSUMERS BY PUBLICIZING THEIR SERVICE ASSISTANCE AS BEING AUTHORIZED BY MAJOR NAME BRANDS

In fact they had no relationship whatsoever with the manufacturers. The companies AD HOME SERVICE, LA CASA, ABI, ABA, ABB, A. CONSUMER, TECNICA and INBOUND, plus Mr. Giovanni Traviglione, author of the publicity tactic and consultant for LA CASA, acted in unison. They were punished with 350 thousand euros of fines and ordered to fix their website-based and Yellow/White Page advertisements.

The Antitrust Authority fined eight companies for unfair commercial practices in which they acted in unison to deceive consumers by presenting themselves on websites and in the Yellow and White Pages (both on-line and printed versions) as authorized service centers for well-known household appliance manufacturers. Giovanni Travaglione, the author of the improper publicity tactic, was fined as well. A total of 350 thousand euros in fines were issued. To halt the publication of misleading information and stop these improper commercial practices, the Antitrust Authority ordered these companies and Travaglione to publish (at their own expense) a corrective declaration on relevant websites and on-line listings.
Investigation was launched on the basis of approximately fifty complaints received from individual consumers, consumer associations and the Guardia di Finanza (Italian Tax Police) of Reggio Emilia, suggesting the widespread nature of the phenomenon.  
Advertisements for the companies' activities placed considerable emphasis on the manufacturers, leading consumers to presume that the appliance manufacturers themselves had authorized the repair services provided by these centers. Calling the given toll-free numbers, customers were in effect convinced that they would be visited by specialized technicians who had been authorized or approved by major manufacturers.
Consumers calling the toll-free number for one of the companies that were fined, furthermore, may in fact be served by repairmen from one of the other companies. Servicing procedures make it difficult to discern which of the companies is actually providing the service and, as reported in many complaints, this makes it difficult for consumers to exercise their rights.
According to the findings of the investigation, LA CASA played a special coordinating role in this group. While the assistance center used a variety of organizational names (such as Home Service, ABA, ABI, ABB and A.CONSUMER) in its public advertising over time, the unified commercial and promotional strategy continued to employ the same basic narrative.
The Antitrust Authority scaled the fines to the degree of responsibility and length of time that each individual company engaged in these practices: ABI 100,000 euros, ABA 30,000 euros; A. CONSUMER  5,000 euros; AD HOME SERVICE 50,000 euros; TECNICA 5,000 euros; INBOUND 5,000 euros; ABB 5,000 euros; LA CASA 100,000 euros. Giovanni Travaglione was fined 50,000 euros.


Rome, 19th August 2010