It is impossible to imagine a world without mobile phones as these gadgets have become an essential part of our daily lives.
However, are consumers satisfied with the service they are receiving? Are they being treated fairly? World Consumer Rights Day is focusing on the main issues affecting consumers of mobile phone services.
EU law on unfair contract terms states that the standard contract terms used by traders, whether these are terms and conditions or are part of a detailed contract one may have to sign, need to be fair.
EU laws contain a list of specific terms that may be deemed unfair. If specific terms in a contract are unfair, they are not binding on consumers, and the company may not rely on them. An unfair term is defined as any term in a consumer contract that creates an imbalance between the rights and duties of buyer and seller.
It is also unfair if the contract proves to be detrimental to the consumer, or if it causes its performance to be significantly different to what the consumer reasonably expects. A term contrary to the requirements of good faith is also deemed unfair.
A mobile phone contract that includes a prohibited or unfair term is not binding on the consumer unless it may still exist without the unfair term. Terms must be written in plain and understandable language. If there are any ambiguities, the interpretation most favourable to the consumer prevails.
The service provider may not insert any terms that exclude or limit the consumer’s legal rights, nor can the consumer be prohibited from seeking the cancellation of the contract in such cases.
When subscribing online, pay attention to tabs allowing for automatic renewal of the contract, as they may also be unfair.
Automatically renewable contracts, by definition, automatically impose a new minimum contract period with penalties for leaving, unless you actively withdraw from such a renewal.
Ideally, at the end of your minimum contract term, you should be given the opportunity to cancel without the contract being automatically renewed. Certain countries, such as the UK, have banned automatic renewal of contracts.
If you wish to cancel your mobile contract, it is imperative that you check your cancellation rights in your terms and conditions. These should have been sent to you in writing when you bought the service.
According to EU rules on distance selling, if you have just subscribed online or over the phone to a service contract, you are entitled to a cooling-off period during which you may change your mind without incurring penalties.
This period varies according to the member state where the service provider is located. However, this does not apply if you start using the service before the expiry of the cancellation period.
Certain contracts are binding for a specific number of months or years and may not be cancelled prematurely without having to pay the monthly charges for the minimum contract period.
In such cases, you are only legally entitled to cancel such a contract without incurring penalties if the service provider fails to provide the service agreed during the contract. Otherwise, the service provider may charge you for cancelling the contract prematurely. You must, however, be informed of such a charge prior to the conclusion of the contract.
That said, it is your responsibility to read the terms and conditions of the contract you are about to sign.
If you do decide to cancel the contract prematurely, you should also take into account any financial losses.
EU law also prohibits unfair commercial practices. If your written contract does not reflect the terms you agreed with the salesperson when you bought the service, you may have been missold the contract.
You should make a formal complaint to your service provider requesting a change of your contract terms to match what the salesperson said. If the statement made by the salesperson is false and influenced your decision to buy the service, this is an example of an unfair commercial practice.
If this is the case, you can cancel your contract without charges and may be entitled to initiate legal action for compensation. You should be given certain information in a transparent manner before choosing a contract, including details about costs, call tariffs, savings and special offers.
The service provider should not charge you for services you did not ask for and which are not specified in the contract. A salesperson must not put you under pressure to sign up to a service. This is usually referred to as aggressive commercial practice.
This information has been provided by the European Consumer Centre Malta. ECC Malta is part of the European Consumer Centres Network, which is financed by the European Commission and member states and consists of 30 centres in 28 EU countries, Norway and Iceland.
Odette Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.