Unfair Commercial Practices Directive, Annex I, 29.

(1) It is a misleading commercial practice to repair previously installed elevators in the absence of any technical issues and without an order of the consumer. In this regard, it should be taken into account that the sector of elevators is characterised by a high level of information asymmetry.

(2) Demanding payment for the repair of an elevator in the absence of any technical issues and without an order of the consumer, falls within the scope of Annex I-29 of the UCP Directive.

Further to the complaint of a competitor and of the Italian Ministry for the Economic development, the Italian Competition Authority initiated on  23 October 2008 its investigation proceedings against two traders (Otis Servizi S.r.l. and Otis S.p.a.) active in the market for installation and maintenance of elevators and other electric devices.

The commercial practices investigated by the Authority concerned the repair of the elevators previously installed, in the absence of any technical issues and without the order of the consumers.

The Italian Competition Authority decided that this practice represents an unfair commercial practice, and in particular constitutes a misleading commercial practice, since consumers have been provided with false information with respect to the real necessity of repairing the elevator. It was also taken into account that a high asymmetry characterizes this sector, where a specific know-how is required.

The Authority also decided that the conduct constitutes a per se aggressive commercial practice (Annex I-29 of the UCP Directive), since the payment was requested of services that were supplied without being ordered.

 

Is it an unfair commercial practice to repair previously installed elevators in the absence of any technical issues and without an order of the consumer?

URL: http://www.agcm.it/agcm_ita/DSAP/Dsap_pi.nsf/a0d111d6626f957fc125652a00315873/1ba7da0afa933d20c12575cf004c3081?OpenDocument&Highlight=2,PS1799

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The Italian Competition Authority has decided to fine the involved traders on the basis of the gravity and duration of the practice as follows:

Otis Servizi S.r.l. - 200.000 EUR

Otis S.p.A. - 150.000 EUR

and to impose to cease the unfair behaviour.