Provider of medical alert systems for seniors to compensate harmed consumers following ACM intervention

A provider of medical alert systems (also called personal alarm systems) for seniors will compensate individuals who purchased alert systems from door-to-door sellers between January 1, 2022 and August 31, 2024, and will offer these individuals the opportunity to cancel their subscriptions free of charge. In addition, this provider has drastically adjusted its practices. This has been the result of an action taken by the Netherlands Authority for Consumers and Markets (ACM).

The company in question sells, under the trading name Persoonsalarmering B.V., subscriptions to medical alert systems for seniors through door-to-door selling. Under the trading name Nederlandse Seniorenalarmering B..V, the company sells the same medical alert systems over the phone and online. ACM received reports about aggressive customer-recruitment practices, unclear prices, and unfair cancellation conditions in connection with Persoonsalarmering B.V. After ACM had launched the investigation, the company made a commitment to adjusting its practices immediately as well as to compensating any harmed individuals. ACM has therefore decided to end the investigation.

Martijn Ridderbos, Member of the Board of ACM, explains: “Since the company targets an often vulnerable population, it needs to take this into consideration, and therefore, the bar has been set high in terms of doing business with care. It’s important that the company has adjusted its practices, and that it will compensate any harmed individuals. We will make sure the company will honor its commitments.”

What was this case about?

The medical alert system for seniors that this company sells consists of a wearable help button in combination with a subscription. When pressing the help button in an emergency situation, the user is automatically connected to a personal contact or an operator in an emergency monitoring center. These systems are mostly used by older and vulnerable individuals. Sellers approach potential customers in a targeted manner, either at the door, over the phone, or online. Based on some reports about Persoonsalarmering B.V., it turned out that individuals felt pressured to make a quick decision in those interactions at the door, also because the sellers played on feelings of fear. The door-to-door sellers were unclear about so-called ‘unsubscribe fees’, and incorrect discounts were used. The information about early cancellations and the cooling-off period was not clearly written down in the general terms and conditions. The provider has made a commitment to ACM to adjust its practices immediately with regard to all of these points.

What commitments has the provider made?

The company will adjust its practices, and it will compensate all harmed consumers. It will additionally take extra measures to prevent violations of the consumer protection rules, moving forward. Over the next few months, ACM will keep a close watch on the company to monitor compliance with the commitments, for example, by monitoring reports filed with ACM’s consumer information portal ACM ConsuWijzer.

The company has made the following commitments:

• Consumers that paid unsubscribe fees at any point between January 1, 2022 and August 31, 2024, will be reimbursed. The amount of 49.95 euros will be automatically be transferred.
• It will be included in the general terms and conditions in a clear and easy-to-understand manner that consumers are able to cancel their contracts within the statutory cooling-off period of 14 days.
• Customers that took out contracts through door-to-door selling (doorstep selling) between January 1, 2022 and August 31, 2024, will have the opportunity to cancel these contracts immediately and free of charge. They will be informed by the company by email or by regular mail.
• In addition, the information about the costs will be clarified, and the company’s complaint-handling process will be improved.
• The consumer-recruitment process will be brought in line with current rules and regulations.
• The company’s staff will receive training in order to ensure that they do not exert improper pressure.
• Incorrect general terms and conditions will be corrected and will be presented in a clear and easy-to-read manner.
• Customers will be switched from 2G to 4G free of charge.
   

Tips for consumers

Information about your rights in door-to-door selling or over the phone and online, such as your right to a cooling-off period can be found on ACM’s consumer information portal ACM ConsuWijzer. You can also file reports and submit questions on ACM ConsuWijzer.