Unfair Commercial Practices Directive, Chapter 2, Section 1, Article 7, 1. Unfair Commercial Practices Directive, Chapter 2, Section 2, Article 8

(1) Concluding an agreement omitting information on the contract terms and conditions and the identification of the trader, constitutes a misleading commercial practice as it influences the ability of the consumer to take an informed transactional decision.

(2) The conclusion of a contract without the consent of the consumer constitutes an aggressive commercial practice.

 

Further to a complaint reported by a consumers' association and by several consumers, on 15 July 2010 the Italian Competition Authority decided to start investigation proceedings against the defendant, an energy company. The proceedings concerned the alleged unfairness of the commercial practice consisting of concluding and activating electricity and gas supply contracts.

The plaintiff claimed (and it was established) that the defendant omitted material information allowing the consumer to take an informed transactional decision as information was omitted concerning the terms and conditions of the contract and the identification of the trader. According to the plaintiff, defendant's agents did not identify themselves as agents of the defendant, thus leaving the consumers unaware of the defendant's identity.

Next, it was established that in some cases, the defendant activated contracts with consumers who had not consented with the conclusion of the contract. It was established that in some cases, the defendant had falsified consumer signatures.

(1) Does the omission to provide information on the contract terms and conditions and the identification of the defendant, constitute a misleading commercial practice?

(2) Does the conclusion of a contract, without consent of the consumer, constitute an aggressive commercial practice?

 

(1) The Authority considered that, in accordance with Italian legal provisions implementing the UCP Directive, activating the electricity and gas supply agreement omitting information on the contract terms and conditions and the identification of the trader (defendant's agents did not identify themselves as agents of the defendant), constitutes a misleading commercial practice as it influences the ability of the consumer to take an informed transactional decision.

(2) In a short reasoning, the Authority stated that the conclusion of a contract without the consent of consumers, e.g. by falsifying the signature of the consumer, constitutes an aggressive commercial practice.

 

URL: http://www.agcm.it/ricerca-avanzata/open/C12560D000291394/6A1E8C54A173AF22C125780F003FEA7F.html

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The Italian Competition Authority decided on the basis of the gravity and duration of the practice, to fine the defendant and it imposed the obligation to cease the unfair behaviour. The fine amounted to 65.000 EURO.