Consumer Authority imposes penalty on Pretium Telecom

Following an inspection, the Consumer Authority found that Pretium Telecom is continuing to advertise for customers for landline telephone contracts in an incorrect manner. As part of an inspection at a number of call centres that work for Pretium, the Consumer Authority demanded recordings of calls made. Upon further investigation the Consumer Authority identified frequent infringements of the rule that a company advertising for customers must make it clear at the start of the telephone call the identity of the caller and the commercial purpose of the call. As the Consumer Authority had already ordered the company in an earlier decision to modify its telephone campaigns to comply with the rules, the company consequently has been fined a total of EUR 35,000.

Marije Hulshof, director of the Consumer Authority, says: "We had previously found that the company was infringing the rules. Now we have found that it is still doing so, we are taking action against the company to ensure that it stops. Unfortunately consumers must still be extra careful during the coming weeks and months."

The Consumer Authority will monitor Pretium Telecom's advertising activities closely in the coming months, and if necessary will once again impose a fine on a daily basis in order to force the company to comply with the order. Pretium Telecom disputes that it has infringed these orders and as a result incurred a fine. The company has lodged an objection to the decision of the Consumer Authority to impose the fine. This objection is currently being considered.

Background

On 7 March this year the Consumer Authority announced that it had imposed a fine of EUR 87,000 on Pretium Telecom for the way in which the company advertises for customers by telephone. In addition, in that decision the Consumer Authority issued three orders to the company upon pain of a fine on a daily basis to ensure that its advertising practices complied with the prevailing rules. Subsequent inspections have shown that the company is still failing to comply with the rules by not stating the identity and the commercial purpose of the call, and so a fine on a daily basis has now been imposed. The cancellation terms are now correctly stated in the welcome letter. The investigation into whether the costs of the call are stated correctly is still ongoing.