PRESS RELEASE

THE ICA FINES TELECOM AND WIND FOR UNFAIR PRACTICES AIMED AT REDUCING THEIR PERIOD OF RENEWAL

The ICA imposed fines on Telecom and Wind, respectively EUR 410,000 and EUR 455,000, for unfair commercial practices related to the reduction of their renewal period from 30 to 28 days for mobile phone offers signed by their customers.

In particular, the Italian Competition Authority ascertained the unfair practice of the two companies which, among other things, modified the period for renewing the mobile voice options combined with the sale of products (smartphones, tablets, etc.) on instalment terms, charging the balance of the remaining instalments in one single payment for those who had exercised the right of rescission. As regards Telecom, the practice also envisaged the payment of additional sums in case customers switched to another operator. In the case of Wind, its modifying of the renewal period even for the options on which a discount had been applied on the activation cost was considered an unfair practice entailing, in the case of early termination, a fee for the recovery of this discount.

The ICA noted that the unilateral imposition of the two telephone operators to reduce the renewal period from 30 to 28 days resulted in an additional cost for all customers who did not wish to accept this change. On the basis of the Consumer Code, the practices were therefore considered aggressive because capable of limiting consumers’ freedom to choose and their subsequent right to rescind, which is recognised by sector regulations as a protection against a contractual modification imposed by the other contracting party. The change was also made in a market context and according to timeframes which, considered in their whole, contributed to affecting customers’ decision whether or not to exercise the above-mentioned right to rescind.

Rome, 5 August 2016