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BackIn an 18-month investigation - the “Mobile Service Sweep” -, national consumer protection authorities in the 27 EU states, Norway and Iceland examined a total of 554 websites for ringtones and wallpapers for mobile phones. In a press conference this Tuesday the Commission presented the results of this investigation. Of the websites examined, half were found to be in breach of existing consumer laws.
The investigation was prompted by hundreds of complaints received by the European Commission with regard to heavy bills for saving ringtones. Coordinated investigative actions (“Sweep”) followed as a direct reaction; 70 % of the problems with the websites in question could already be resolved.
Unclear pricing, lack of operator information
41 % of all websites investigated showed irregularities related to price information: many websites did not show any prices at all and consumers only became aware of the costs involved when they received their phone bills. This situation reminds of an earlier investigation by the Commission in respect of the online purchase of flight tickets. Particularly noticeable was the fact that consumers were often not informed that the service was not covered by a one-off payment, but that they had taken out a subscription.
75 % of all websites examined did not provide complete contact details of the dealer. This represents an infringement against EU Law (eCommerce and Distance Selling Directive). Contact details are among others particularly important to give consumers the opportunity to complain.
In more than a third of all cases, price information was presented in a misleading manner. In 28 % of the cases the downloads advertised as “free” turned out to involve costs after all.
Target group children and young people
More than half of the websites examined, explicitly targeted children and young people and used for example cartoon or television characters to advertise their services. Some websites (theoretically) asked for the parents’ approval. The EU Commissioner for Consumer Protection, Meglena Kuneva, pointed out that children and young people belonged to a particularly vulnerable target group and that everything had to be done to protect them.
But major companies too do not always have a clean slate
Dr. Paolo Saba, Director General of the Consumer Protection Directorate of the Italian Antitrust Authority reported that in Italy fines totalling about 2 million Euros had been imposed on nine companies. What is remarkable is the fact that the companies penalized also included major corporations such as Telecom Italia and Vodafone.
Situation in Austria
According to information of the Federal Ministry of Labour, Social Affairs and Consumer Protection, a total of 29 websites of mobile ringtone and wallpaper providers were investigated in Austria. Of these, almost 3/4 infringed against the Consumer Protection Law, whereby seven websites are operated by third country providers (USA and United Arab Emirates), which means that they could not be pursued any further. The breaches of six websites have already been corrected, one in parts. Proceedings are pending in case of seven (resp. eight) websites; three involve national providers. A major part of the breaches regarding the websites investigated in Austria concerned the misleading of consumers with respect to price and incomplete contact information related to the operator.
Further information:
Press release of the Commission (German)
Website on Mobile Phone Content Sweep (English only)
Press Release of the Commission (English)
Unclear pricing, lack of operator information
41 % of all websites investigated showed irregularities related to price information: many websites did not show any prices at all and consumers only became aware of the costs involved when they received their phone bills. This situation reminds of an earlier investigation by the Commission in respect of the online purchase of flight tickets. Particularly noticeable was the fact that consumers were often not informed that the service was not covered by a one-off payment, but that they had taken out a subscription.
75 % of all websites examined did not provide complete contact details of the dealer. This represents an infringement against EU Law (eCommerce and Distance Selling Directive). Contact details are among others particularly important to give consumers the opportunity to complain.
In more than a third of all cases, price information was presented in a misleading manner. In 28 % of the cases the downloads advertised as “free” turned out to involve costs after all.
Target group children and young people
More than half of the websites examined, explicitly targeted children and young people and used for example cartoon or television characters to advertise their services. Some websites (theoretically) asked for the parents’ approval. The EU Commissioner for Consumer Protection, Meglena Kuneva, pointed out that children and young people belonged to a particularly vulnerable target group and that everything had to be done to protect them.
But major companies too do not always have a clean slate
Dr. Paolo Saba, Director General of the Consumer Protection Directorate of the Italian Antitrust Authority reported that in Italy fines totalling about 2 million Euros had been imposed on nine companies. What is remarkable is the fact that the companies penalized also included major corporations such as Telecom Italia and Vodafone.
Situation in Austria
According to information of the Federal Ministry of Labour, Social Affairs and Consumer Protection, a total of 29 websites of mobile ringtone and wallpaper providers were investigated in Austria. Of these, almost 3/4 infringed against the Consumer Protection Law, whereby seven websites are operated by third country providers (USA and United Arab Emirates), which means that they could not be pursued any further. The breaches of six websites have already been corrected, one in parts. Proceedings are pending in case of seven (resp. eight) websites; three involve national providers. A major part of the breaches regarding the websites investigated in Austria concerned the misleading of consumers with respect to price and incomplete contact information related to the operator.
Further information:
Press release of the Commission (German)
Website on Mobile Phone Content Sweep (English only)
Press Release of the Commission (English)