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PS3216 - Services to micro-enterprises: Antitrust sanctions companies forming part of Index Group for misleading advertising and unfair commercial practices: fines totalling €324,000


PRESS RELEASE


PRESS RELEASE

 

SERVICES TO MICRO-ENTERPRISES: ANTITRUST SANCTIONS COMPANIES FORMING PART OF INDEX GROUP FOR MISLEADING ADVERTISING AND UNFAIR COMMERCIAL PRACTICES: FINES TOTALLING €324,000

 

With a coordinated strategy, and with each company having its own role, the companies advertised the opportunity to join an IT network through which small business and micro-enterprises could operate as a centre for the sale of a range of services such as the recharge of mobile phones, the forwarding of mail and online betting. The companies, however, failed to explain that some services could be unavailable. When the micro-enterprises sought to withdraw from the contract, the companies opposed with a series of obstacles.

Penalties totalling €324,000 to Index Holding and to companies forming part of the group for misleading advertising and unfair commercial practices – this was the decision reached by the Antitrust Authority that condemned these companies to publish an extract of its decision in order to safeguard the interests of micro-enterprises.

Proceedings were initiated in the light of reports sent by several small businesses, mostly operators of bars, newsstands, small and very small restaurants, often family-run. According to what was established by the investigation, companies forming part of the Index Group, each having its own role, first advertised the opportunity to join an IT network through which the owners of the businesses could operate as a centre for the sale of a range of services such as “the recharge of mobile phones, the forwarding of mail and online betting.” Publicity campaigns that were also undertaken by means of the delivery of leaflets door-to-door, omitted to explain, however, that some services might be unavailable. In some cases a warning about the possible unavailability of certain services was indicated but in very small print. Those who joined the offer often found themselves in a position where they were not able to provide service to their customers (and in the process also suffering damage to their reputation): at the time of termination of their contract, however, they encountered a number of obstacles consisting of a premeditated and organized shedding of responsibility by the subsidiaries of Index Holding. The only option available to these businesses to obtain recognition of their rights was to sue the company.

As for the individual roles, Index Europea S.p.A. is the contracting party in the contracts referred to as Indexpoint and advertised products and services of the group and was also responsible for the management of relationships with customers when they complained about the unavailability of the products and services. The same role was played by Imel.Eu S.p.A. for contracts referred to as Imelpoint. Index Finanziaria was instead the contractual counterpart of micro-enterprises in stipulations regarding funding, intended expressly and exclusively for payment of the price of products/services referred to under agreements known as Indexpoint and Imelpoint. Even this company was responsible to advertise and to offer its financial services to clients of the group along with the products and services of the group, and it resulted that it was directly involved in the management of relationships with customers at the time of their complaints on the unavailability of products and services that were sold by the other companies in the group mentioned above. Indexcom S.r.l. is the company in the group to which reference was made by the various promoters who would go to the premises of customers to present the contracts and to have them signed. Finally the parent company Index Holding had a coordinating role among the various companies.

In the light of the reconstruction made, the Antitrust Authority therefore decided on the following sanctions:

 

For misleading advertising:

-    Index Holding S.p.A.            €8,000 (eight thousand euro);

-    Index Europea S.p.A                        €78,000 (seventy-eight thousand euro);

-    Indexcom S.r.l.                                €3,000 (three thousand euro);

-    Index Finanziaria S.p.A.                   €4,000 (four thousand euro);

-    Imel Eu S.p.A.                                 €7,000 (seven thousand euro).

 

For unfair trade practices:

-    Index Holding S.p.A.            €20,000 (twenty thousand euro);

-    Index Europea S.p.A           €202,000 (two hundred and two thousand euro);

-    Index Finanziaria S.p.A.        €12,000 (twelve thousand euro).

 

 

Rome, 21st October 2013