UPC Polska penalty for termination of contract before UOKiK deadline

in communication Competition and Consumer Protection Office It was observed that Actions against UPC Polska On the basis of complaints sent by clients of the company with copies of the concluded contracts.

– I wanted to terminate the contract with UPC earlier. After the phone call I received information that if I terminate the contract in August of this year. The fine is 11,000 PLN. The contract was concluded in March 2021 for a period of two years. The cost of the entire contract is about 3100 PLN – wrote in one of the complaints.

– On September 30, 2021, the operator set the deadline for its termination of November 1, 2021, with a fine for terminating the contract before the end of the commitment period in the amount of PLN 2,085.15. I would like to mention that there are 7 months left until the end of the contract and with 89 PLN of the fee, the amount of payment will be less than PLN 630 – another customer of UPC Polska stated.

According to complaints, UPC Polska charges very high fees from resigning clients

The office confirms that Analysis of complaints and concluded contracts shows that UPC Polska may retain a fee that is insufficiently high for early termination of the contract – it exceeds the value of such contracts (total subscription fee). As a result, customers will have to pay more for the termination of the contract than if they pay monthly for UPC services.

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– The actions will show whether the operator of UPC Polska overstated the discounts granted to consumers, which are the basis for calculating the fee for termination of the contract – announced Thomas Krustney, President of UOKiK.

Complaints indicate that the total costs related to terminating the contract may exceed the total costs related to continuing the contract. This can lead to a situation where the consumer is forced to continue the service out of fear of disproportionately high fees – He adds.

The UOKiK announcement stated that, according to the regulations, if a consumer terminates a contract with a telecom operator before its termination, the latter has the right to charge a fee. This fee may not be higher than the discount granted to the consumer, less than the time of use of the Services. The amount of the discount is indicated in the contract – it is about concluding a contract with promotional terms.

The actions of the UOKiK President regarding infringement of collective consumer interests may result in a fine of up to 10%. Annual turnover of the sanctioned company.

UOKiK noted in the announcement that He conducted similar explanatory proceedings against Netia and Vectra – so far in the case, not against these two companies. The Bureau checks whether operators maintain a fee for termination of the contract by consumers that is higher than the total amount of the subscription.

It added that the head of UOKiK “does not rule out further action against other entities”.

Following decisions by the Bureau of Competition and Consumer Protection, UPC Polska customers received returns

In the fall of 2020. On the basis of a legally valid decision of the President of UOKiK, UPC Polska compensated customers for increases in fees for internet service provided in 2015-2016, which the office found to be inconsistent with the contracts. Subscribers to the operator received several variants of compensation.

In February last year Yukik UPC Polska is legally obligated to compensate customers for the UPC Safety Package, which was included without their consent. Customers received a refund of up to PLN 54 through discounted accounts.

In turn, in the middle of 2020 UOKiK has questioned several practices used by UPC Polska employees, mainly in phone sales calls.. It was, among other things, the failure to inform the customers of their right to withdraw from the contract and the failure to confirm the terms of the contract modification proposed by the company, and the assumption that installation work would be carried out in the customer’s home by the company’s technician, before being confirmed by the consumer on paper or other permanent medium.

UPC Polska has pledged to make appropriate changes to procedures, and to provide compensation to clients who have complained about these violations.

Play will pay 7 billion PLN for UPC Polska

At the end of September last year UPC Polska had 1.548 million customers and 3.307 million digital subscriptions were sold. In the first three quarters of last year, the company recorded revenue of $344.9 million, operating profit of $83.9 million and net profit of $44.3 million.

In the second half of September last year, P4, the Play Network operator, entered into a 100 percent purchase agreement. Shares of UPC Polska of Liberty Global. The price is PLN 7 billion, in the announcement of P4 it was stated that it “corresponds to the 2020 EBITDAaL multiplier at 9.3x before synergies effects and approximately 7x taking into account revenue and cost synergies”

The deal is scheduled to be completed in the first half of 2022 after antitrust approvals are obtained. In December P4 Signing of a loan agreement in the amount of PLN 5.5 billion to partially finance the purchase of UPC Polska.

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