ToeslagenPortal will compensate harmed consumers following ACM action
Intermediary service provider ToeslagenPortal will compensate individuals that have used its online services. In addition, it has adjusted its practices. This has been the result of an action taken by the Netherlands Authority for Consumers and Markets (ACM).
ToeslagenPortal is an intermediary service provider, which, on behalf of consumers, files applications for health-care benefits, housing benefits, and childcare benefits with the Tax Administration/Benefits (part of the Dutch Ministry of Finance). Individuals complained to ACM that it was not clear to them that this was a paid service. They believed that they could apply for a benefit directly with the Tax Administration/Benefits free of charge. Instead, they paid 58 euros for their applications with ToeslagenPortal. The overwhelming majority of individuals ended up at ToeslagenPortal’s website through a search engine, because its ads appeared at the top of the search results. Individuals that have applied for benefits via this website since 1 January 2022 can get their money back: the amount that they had paid for the application. ToeslagenPortal has reserved 250,000 euros for this. Additionally, it has adjusted its practices, for example, stating more clearly that it is a paid service offered by a commercial business. ToeslagenPortal has made a commitment to ACM that it will comply with the rules.
Manon Leijten, Member of the Board of ACM, explains: “It is good to hear that individuals that have used ToeslagenPortal and come forward are able to get their money back. It is also important that ToeslagenPortal has adjusted its practices, and that it will comply with the rules. This is also an important signal to other businesses with similar practices.”
ToeslagenPortal’s practices
Individuals that wanted to apply for benefits online ended up at ToeslagenPortal through an ad that appeared at the top of their search results. They were not directed to the website’s homepage, but were directly forwarded to the application form. They subsequently filled out the form, believing that it was an application form from the Tax Administration/Benefits. Only at the end of the order process were they informed about the price in an unclear manner, and that they waived their right of withdrawal. The design of this information resulted in most consumers overlooking this information.
ACM’s investigation
Following reports from harmed consumers, ACM launched an investigation into ToeslagenPortal and its websites. Due to the seriousness of the violations, ACM, after the investigation, could have imposed a fine and an order subject to periodic penalty payments in order to stop the misleading practices. During the investigation however, ToeslagenPortal applied for a commitment decision. ACM does not decide lightly to close an investigation, and, when deciding to do so, attaches great value to the interests of individuals. As ToeslagenPortal has committed to compensating the harmed consumers and to adjusting its practices on all identified points, ACM has decided to accept the commitment and to close the investigation. Under the current laws, ACM could never have exacted compensation for harmed consumers.
ToeslagenPortal’s commitments
ToeslagenPortal has committed to compensating individuals that have used the services of ToeslagenPortal since 1 January 2022. It will actively contact those individuals. ToeslagenPortal has reserved an amount of 250,000 euros for this. If the full amount is not paid out, any remaining amount will be donated to a Dutch foundation combating poverty (which is Stichting Armoedefonds).
ToeslagenPortal has adjusted its practices. For example, it has improved the information on its website such as the statement that it is a commercial business, what they charge for applying for a benefit through them, and how to reach them. In addition, they have clarified the information regarding the 14-day cooling-off period as well as the purchase button. Also, the content of the ads on search engines has been adjusted. Over the next few years, an independent third party will actively assess ToeslagenPortal’s compliance with its commitment. This will be done for a period of two years. If ToeslagenPortal fails to comply with its commitment, ACM can impose a fine anyway.