AGCM

PRESS RELEASE

CONSUMER PROTECTION: ANTITRUST SUSPENDS FOR 15 DAYS THE ACTIVITY OF TWO COMPANIES THAT PROMISED EASY PROFITS THROUGH A MEMBERSHIP SCHEME.

IN FACT THEY MADE APPLICATION SOFTWARE AVAILABLE AT A HIGH PRICE. IN COLLABORATION WITH THE ANTITRUST GROUP OF THE SPECIAL MARKET PROTECTION UNIT OF THE GUARDIA DI FINANZA (ITALIAN TAX POLICE) THE SITES THROUGH WHICH THE ACTIVITY WAS CARRIED OUT WERE BLOCKED

Invoked for the first time the rule that allows the suspension of business activity in case of repeated failure to comply with a decision of the Authority.

A suspension of business for 15 days for Evolution Travel Italia S.r.l. and Evolution Travel Network Ltd. – this was the decision of the Antitrust Authority which, in collaboration with the Antitrust Group of the Special Market Protection Unit of the Guardia di Finanza (Italian Tax Police), blocked the sites through which the two companies were undertaking this activity. This is the first time that the Authority applied this provision as envisaged by law.

In 2007 the Antitrust Authority had originally sanctioned Evolution Travel Italia (which at that time was called Dodotour – Evolution Travel) for having circulated messages that envisaged the possibility of performing work from home, even part-time, by making use of the internet in the field of travel and tourism. The activity was billed as an opportunity for gainful employment under franchising arrangements with investment costs and risks being kept contained in contrast with the opening of a travel agency. The messages gave the impression that it was a suitable occupation for anyone who was on the lookout for work, even a part-time job, without incurring any fixed management costs and taking advantage of the support and training provided by the company. People were also given to understand that there were very good prospects of gaining money and that the sum invested could easily be written off. Whoever read the message was mistakenly led to believe that the offer was an opportunity to work freelance under franchise arrangements in a flexible and profitable manner, at a low risk, without any expenses and without any fixed costs. In fact the company offered only the transfer and supply of services and software tools that were required in order to carry out the work against the payment of €18,900 (now €23,000) and ignored or minimized the difficulties, the running costs and the very high risk of loss of capital and the uncertainty of the profits.

After the first penalty of €25,000 the Authority took further action against the company for failure to comply with two procedures concerning non-compliance in 2008 and 2009, brought to an end by penalties that amounted respectively to €100,000 and €150,000. The third procedure for non-compliance, which takes account of changes that took place in the company, was concluded with the suspension for 15 days of the activity of the company by means of a blackout of the sites.

Rome, 22^nd November 2013