Netherlands Consumer Authority: identifying and solving consumers problems more quickly

In the last six months, the Netherlands Consumer Authority’s (CA) strategy was primarily focused on detecting and solving consumer problems at an early stage. Such an approach may prevent further harm to consumers. Ms. Bernadette van Buchem, director of the CA, explains: ‘A good example of this strategy is, what we call, the rapid interventions. Businesses that generate a lot of consumer complaints are forced to eliminate the source of those complaints, and to adjust their behavior immediately.’ In addition, the CA always has the option of imposing a fine if a violation has been established.

Progress of the Agenda 2012-2013

In the CA’s Agenda 2012-2013, the following focus areas have been identified:

1. online retailers: delivery and payment problems
2. untransparent prices in the travel industry
3. misleading and aggressive telemarketing sales methods

Online retailers:

With regard to online retailing, much attention in the first half of the year was focused on swiftly dealing with online retailers that have generated a lot of reports on delivery and payment problems. This has resulted in three commitments, a public warning, and one warning letter. In the second half of 2012, emphasis will also be placed on informing online retailers (both new and existing) about regulations. In addition, the CA is planning to launch an awareness campaign to help consumers better assess the trustworthiness of online retailers.

Untransparent prices in the travel industry

In the first half of 2012, the CA examined why the prices in the travel industry are so untransparent. It turns out that the biggest problems are the additional costs that are unavoidable (and should therefore be included in the price), and ‘opt-in’ (pre-selected checkboxes for optional products/services). Furthermore, several investigations were launched into businesses that might have violated regulations. Efforts in the second half of 2012 will be focused on realizing a behavioral shift in the parties involved.

Telemarketing

Consumer information portal ConsuWijzer in June launched an awareness campaign, warning consumers about unwanted purchases by phone. It primarily targeted seniors, who are already vulnerable. Using sound clips of telemarketing conversations, ConsuWijzer explains to consumers how sales techniques work, and offers them the opportunity to rehearse how to say ‘no’ to telemarketers.  In this industry too, several investigations were launched into businesses that might have violated regulations.

Preliminary studies

Moreover, the CA is planning to launch two preliminary studies in the second half of 2012: one into warranty issues regarding mobile phones, and another on potential consumer problems concerning online games. The CA welcomes all indications and tip-offs regarding both of these topics (please submit them to ConsuWijzer).

Consumer information portal ConsuWijzer

Reports and indications received by ConsuWijzer help the CA keep track of the problems consumers face. This information is of great importance in order to be able to identify and solve consumer problems quickly.

Merger

On January 1, 2013, the CA will merge with the Netherlands Competition Authority (NMa) and the Netherlands Independent Post and Telecommunications Authority (OPTA) into a new, single authority: the Netherlands Authority for Consumers and Markets (ACM). Consumer protection, including in the energy and telecommunications industries, will be housed in a single department within the new authority, which will be headed by Ms. Bernadette van Buchem, currently the director of the Netherlands Consumer Authority.