Online marketing company Allfree to pay penalty payment for having misled consumers
Online marketing company Allfree is still misleading consumers. That is why the company has to pay a penalty of 89,000 euros. Allfree runs misleading websites for locksmiths and other emergency services. In July 2021, the Netherlands Authority for Consumers and Markets (ACM) ordered Allfree to stop those practices. If it failed to do so, it would have to pay weekly penalty payments for ten weeks. At the end of that ten-week period, Allfree still had not stopped operating those misleading websites. That is why ACM will demand the maximum penalty amount.
Cateautje Hijmans van den Bergh, Member of the Board of ACM, explains: “It is not allowed to mislead consumers, especially not in emergency situations, which makes them particularly vulnerable. Allfree did implement some adjustments, but it also continued operating its misleading websites. We did tell them on several occasions that they still had some work left to do, and told them in that context that the penalty amount would go up with each passing week. Now is the time to actually collect the penalty. At the same time, we will continue to keep a close watch on this company, and we may take new steps in order to compel Allfree to adjust its websites. At the end of the day, that is the best solution for consumers.”
What was this case about?
Online marketing company Allfree is a website developer, and also advertises for these websites. Businesses may register with Allfree in order to attract consumers for their own services using Allfree’s websites for a fee. These also included all kinds of providers of emergency services such as locksmiths. In July 2021, ACM ordered Allfree to stop its misleading practices vis-à-vis consumers that were looking for locksmiths or other emergency services. ACM had given Allfree until the end of September to adjust its websites. If they failed to do so, they would be imposed a weekly penalty payment of 8,900 euros for ten weeks, starting in early October 2021. Checks carried out during that ten-week period revealed that there were still misleading texts on various websites.
Allfree was ordered to do the following with regard to its websites:
- Include information about the service provider.
- Be clear and honest about the service and the service provider’s role.
- Stop the improper use of certification labels.
ACM’s campaign against emergency services
Imagine the following situations. You have lost your key, and you can no longer enter your own house. Or your kitchen drains and pipes are clogged, and dirty water is coming into your house. In situations like these, you need a professional, and fast. You go online and look for a company that can help you quickly. On some websites, it is not always clear whom you eventually hire for the job. It could also be companies that do a lousy job, charge way too much, and may take on a heavy-handed approach. Allfree’s methods make it much more difficult to find out whom you will be doing business with.
ACM wishes to prevent consumers from ending up with businesses that take advantage of the situation. That is why ACM has imposed this penalty on Allfree. Other actions taken by ACM to improve the functioning of the locksmith market include imposing fines, taking down websites, and blocking phone numbers. In these actions, ACM works together with Dutch police, SIDN, the Centre for Crime Prevention and Safety (CCV), and regulators in other countries. In addition, ACM is in close contact with fraud and security teams of major banks, and with the trade association of locksmiths.
ACM and the digital economy
The digital economy is a key topic on ACM’s Agenda. People and businesses must be protected against online misleading practices and market power. Consumers must be able to navigate the digital economy with confidence. In order to tackle abuses of dominant positions, ACM conducts investigations, and is able to impose sanctions on businesses, including fines and orders subject to periodic penalty payments. Also, ACM has published ‘Guidelines on the protection of the online consumer’. These guidelines have been based on European consumer protection rules, and explain at what point online persuasion turns into deception. These guidelines form the basis for investigations and enforcement actions by ACM. In that way, ACM ensures that online markets, too, work well for people and businesses.
Information for consumers
Consumers that wish to hire a locksmith or any other 24/7 service can visit ACM ConsuWijzer for tips on what to look out for when searching a trustworthy provider.
Consumers always have the opportunity to file a report with ACM ConsuWijzer.