Based on a number of consumers' complaints, on 14 September 2011, the Italian Competition Authority (the plaintiff) opened an investigation against the defendants, which are financial institutions.
The plaintiff alleged two different infringements of the prohibition on unfair commercial practices.
The first defendant was suspected to demand from consumers that applied for a bank loan, to also purchase a life insurance from the second defendants, whereas the first defendant has advertised that concluding a life insurance was non-compulsory.
The defendants were also suspected to provide misleading and unclear information about the amount of the refund that the consumers would have received in case of cancellation of the insurance policy.
The defendants offered commitments to address the concerns expressed by the plaintiff. However, the latter rejected the commitments because they did not make good the damages suffered by the consumers and the conducts of the defendants were considered very serious infringements of the prohibition on unfair commercial practices.
The plaintiff carried out a market survey which confirmed that the purchase of the life insurance of second defendants was an essential condition imposed by the first defendant to obtain a bank loan.
The second defendants argued that they informed the consumers about the formula to calculate the amount of the refund in case of cancellation of the insurance policy.