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PS7444 - Internet - Antitrust orders the suspension of italia-programmi.net's incorrect practices


PRESS RELEASE


PRESS RELEASE

INTERNET: ANTITRUST ORDERS THE SUSPENSION OF ITALIA-PROGRAMMI.NET'S INCORRECT PRACTICES. THE COMPANY MUST ALSO STOP SOLICITING PAYMENT

The Antitrust Authority ordered Estesa Limited to suspend all of its advertising on Google Adwords and other online publicity tools, both directly and through bridge sites, for the free use of software that can be downloaded from the www.italia-programmi.net website. The website needs to clarify that the service is payment based and all payment solicitations for the presumed annual subscriptions are to be stopped for consumers who have complained that they never intended to sign up nor did they even realize the onerous nature of the service being offered.

In July the Authority launched an investigation into Estesa Limited's incorrect commercial practices in light of numerous complaints received from individuals as well as consumer groups.

According to the complaints received, the link to www.italia-programmi.net is the top result when the name of a specific software program and the word "gratis," "gratuito" or “free” is typed in to the Google search engine. Clicking on the link, consumers were connected to a website where, right beneath the words "DOWNLOAD NOW," personal information was requested for signing up. After entering their information, consumers would be unknowingly signed on to a two-year contract with the Estesa Ltd. company (based in the Republic of Seychelles) for software provision at an annual rate of 96 EUR, to be paid in advance once a year. Although the registration page reported the terms and conditions of subscription, their graphic presentation was insufficient to be readily perceptible, especially given the manner in which consumers were directed there. Consumers were led to believe, in essence, that the service was free of charge.

After the grace period for withdrawal from the contract had expired (and sometimes even earlier) and without providing consumers any prior notification of the contract's presumed validity, Estesa Ltd. would then begin soliciting payment and threatening legal action for failures to comply, loading consumers with large add-on fees that were neither quantified nor quantifiable and immediately supplementing the subscription fee with additional charges for the "recovery" process.

Between 2009 and 2011, the Authority issued over 5 million EUR in fines for incorrect practices involving the use of website registration mechanisms to induce consumers to enter into contracts for various services without their knowledge.

 

Rome – 29th August 2011