Biznes Fakty
Orange and T-Mobile face charges from the Office of Competition and Consumer Protection for the way they present service prices
The President of the Office of Competition and Consumer Protection (UOKiK) has filed charges against Orange and T-Mobile. These allegations pertain to how both firms display their pricing. Each company could face penalties of up to 10 percent of their yearly revenue.
Reports indicate that the operators presented prices that included optional discounts as though they were standard rates.
„Consumers often base their evaluation of a telecommunications offer on the price shown. However, the manner in which companies display this information can sometimes hinder consumers from making fair comparisons of different offers. This is particularly relevant to the marketing practices employed by Orange and T-Mobile, which have been charged by the President of the Office of Competition and Consumer Protection,” the report states.
(non-)standard discounts for e-invoices
It has been noted that both firms provide their subscribers with discounts for actions such as opting for electronic invoices and consenting to marketing communications. During the investigation, the President of UOKiK found that Orange and T-Mobile represented service prices that included these discounts as if they were standard prices. This misrepresentation occurs in both advertising and during phone calls with sales consultants.
Consumers are lured by attractive mobile subscription deals or comprehensive service packages; however, they are not promptly informed that failing to provide certain consents (for marketing and e-invoicing) or complying with additional conditions would lead to higher charges. According to the President of the Office, such practices may be deceptive, resulting in charges against both telecommunications providers for violating consumer collective interests.
„In recent years, the promotional strategies of Polish telecom companies have revolved around gigabytes and discounts. In their eagerness, operators often neglect to clearly communicate the actual costs of their services,” remarked Tomasz Chróstny, president of UOKiK, as cited in the press release.
„When they offer a discounted price contingent on specific conditions, they must clarify what the discount applies to, its value, and the criteria for earning it. Only then can consumers accurately assess the attractiveness of the presented offer,” he continued.
Charges against T-Mobile
T-Mobile, in its advertisements and during sales calls, shows service prices that include discounts—5 PLN per month for various factors such as marketing consents and e-invoicing. Consumers might not realize that the price they are presented with is conditional when making a decision.
This is due to T-Mobile either not showing the price without discounts or failing to clearly communicate the types and amounts of discounts included, or doing so in a vague or ambiguous manner, often too late in the contract signing process. Customers who ultimately choose not to utilize e-invoicing or do not consent to marketing, for instance, end up facing a monthly subscription fee that is 10 PLN higher than the price they initially selected.
Charges against Orange
Orange employs similar tactics. In its marketing messages, it urges clients to take advantage of its offers by displaying prices that reflect discounts for marketing consent or e-invoicing. Discounts are also available for customers who bundle services, such as signing contracts for multiple services on the Orange network—for instance, for two mobile numbers.
The inaccurate representation of service prices is not the only charge brought against Orange by the President of the Office. For customers who do not pay their bills punctually, the company raises subsequent invoices by the amount of the Orange service bundle discount (PLN 20), which was factored into the price.
This is especially detrimental for customers who have availed themselves of this discount, as late payments result in the loss of the discount for all the phone numbers it was applied to. For example, if a single invoice covers multiple phone numbers that received this discount, the forfeited discount amount for each contract will be added to the invoice. For instance, this could total PLN 60 for three phone numbers.
Double punishment for subscriptions
The President of the Office of Competition and Consumer Protection (UOKiK) indicates that losing a discount due to late payment of an invoice may act as a contractual penalty. According to the Civil Code, businesses can only impose such penalties for non-monetary obligations. In this scenario, the operator exercised the right to penalize subscribers twice. Moreover, independent of the discount revocation, late payment interest can also be charged. The President of the Office asserts that such actions may infringe upon the collective interests of consumers.
If the allegations are substantiated, both Orange and T-Mobile may incur fines of up to 10% of their annual revenue.
It has been noted that these companies are not the only telecommunications providers facing scrutiny from the President of the Office of Competition and Consumer Protection. Similar allegations were previously directed at companies like Vectra, Multimedia Polska, P4 (Play network
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