Portugal’s consumer association DECO claims it has won a lawsuit against telecoms giants MEO, NOS and NOWO that could lead to the return of €40 million to customers for price increases between 2016 and 2017.
According to the association, the initial court decision is not yet final, as the three operators could lodge an appeal.
Paulo Fonseca, DECO’s strategic and institutional relations advisor, tells Lusa that the court considered the operators’ communications about price increases during the two years to be null and void as they did not correctly inform customers, or give them the right to terminate contracts without penalty.
“The decision simply does what we have always advocated: it obliges operators to refund the difference unduly charged for around eight to ten months, “ he said.
DECO’s lawsuit against the owners of MEO (Altice), NOS and NOWO (currently owned by Digi) came after several complaints from consumers, who did not know the exact amounts they would be charged and were unaware that they could terminate their contracts without incurring costs.
Vodafone has not been included in this case because, according to DECO, there is no record of increases to private consumers during the 2016-2017 period.
Increases of almost 1,000% above inflation
At issue is the amendment to the 2016 electronic communications law, which now requires operators to inform consumers whenever they unilaterally change contracts, including prices, and to indicate the possibility of termination without penalty.
According to DECO, between August and September 2016, customers began to receive notifications of increases well above inflation – almost 1,000% higher than the rate recorded at the time, which was particularly low.
These communications did not include clear details on the exact amounts to be charged nor on the possibility of termination without penalty.
Shortly after the notifications were sent out, prices were effectively increased without consumers being properly informed or advised of their rights, says Paulo Fonseca.
1.6 million consumers affected
Made aware of the situation due to complaints by telecoms customers at the time, DECO met with the various operators, who maintained that they did nothing wrong. But regulators at Anacom concluded that the notifications were deficient, and ordered them to be repeated. They did not however require any money to be refunded, which is why DECO resolved, in 2018, to take legal action.
According to the association’s calculations, around 1.6 million consumers could be affected by the decision, especially those subject to loyalty periods.
The amount to be refunded was calculated by multiplying ‘the unduly charged monthly increase’ by the number of months it was in force, considering the date of the change until the court decision, says Lusa. In other words, the corresponding amounts were added up, resulting in a total of around €40 million – a figure that DECO admits could become even higher as calculations are refined.
What it means is that on average, each consumer could recover between €14 and €30, plus interest accrued since 2018, which will increase the amount to be paid, if the decision becomes final.
“Even those who have not kept their invoices may be compensated“
Paulo Fonseca “expressed confidence in a favourable outcome for consumers”, says Lusa, and pointed out that even those who have not kept their invoices may be compensated, as the data should be recovered from the operators’ systems.
Asked about a possible dialogue after the decision, Fonseca clarified that DECO has not yet spoken directly with the three operators, as the case is being handled solely by lawyers in the courts.
He also stressed that the decision has symbolic weight:
“This is a good opportunity to make the market more reliable for consumers, so that they are no longer afraid to switch operators,” he told Lusa.
source: LUSA
