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Deputy PM Ninova: We have issued orders prohibiting price increases by mobile operators

deputy ninova have issued orders prohibiting price increases mobile operators
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18:45, 29.12.2021
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Orders prohibiting price increases by mobile operators have been issued, the Ministry of Economy announced on December 29.

With all the possibilities of the law, we will protect consumers from abuses of their rights, said Deputy Prime Minister, Kornelia Ninova.

"Consumers are under unprecedented pressure from rising prices for all goods and services. We will not allow unfair trade practices that further burden families with unbearable costs in this crisis. We will do everything we can to protect consumers from abuse of their rights. "Now the state must take care of the people," said Deputy Prime Minister and Minister of Economy and Industry Kornelia Ninova.

She announced that the Consumer Protection Commission has issued orders prohibiting Telenor Bulgaria and A1 Bulgaria from indexing prices in a manner not provided for in the contracts concluded with consumers. In its reasoning, the Commission emphasizes that a review of the standard contracts and general conditions offered by the company reveals the existence of a clause regulating the indexation of the prices of the monthly subscription fees, namely:

"The operator has the right to index the monthly subscription once a year with the amount of the average annual consumer price index announced by the NSI for the previous year, informing the User in the first monthly invoice after indexing. The indexed monthly subscription is the basis for indexation next year."

As can be seen from the cited text, it is not regulated that the operator has the right to index the monthly subscription fees under contracts for the use of electronic communications services with the average annual consumer price index announced by the NSI for two years at a time. The operator has only the opportunity to increase the monthly subscription fees with the index for one previous year.

The orders have been uploaded on the CPC website, as well as on the website of the Ministry of Economy. Orders can be appealed in court.

Moreover, consumers who signed contracts in the middle and after the middle of 2021 should not expect and accordingly should not be obliged to pay an increase in monthly subscription fees on the basis of the previous year before their decision to sign contracts.

As established by the evidence gathered, in this case the operator indexes the price of the monthly fee in violation of the contract, without granting the consumer the right to terminate the fixed-term contract without penalties if the consumer does not agree with the new monthly fee. Through these unscrupulous acts, the operator could influence the consumer's commercial decision, as the consumer will have to choose whether to continue to fulfil the contract, pay a higher monthly fee or terminate the fixed-term contract and pay a penalty. Ultimately, whichever of the two options the consumer may choose, his economic interests in this case will be significantly harmed, and the operator will benefit from its own misconduct.

"The Commission allows preliminary execution of the order under Article 60 paragraph 1 of the Administrative Procedural Code in order to protect important state and public interests and to prevent harm to the economic interests of consumers in a pandemic and emerging economic crisis in view of increasing prices in all sectors concerning household consumers", pointed out Minister Ninova.

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