• In the Play network, a delay in paying a bill results in the loss of a discount and a higher subscription fee in the following month.
• A discount structured in this way functions as a legally prohibited contractual penalty for late payment.
• The President of UOKiK imposed a fine of over PLN 108 million on P4 and ordered it to refund consumers the unduly charged fees.

P4, the operator of the Play network, encourages customers with a discount for e-invoices and timely payments, usually amounting to PLN 5 per month. However, if a consumer is late with a payment, they lose this discount and their next bill increases. In the opinion of the President of UOKiK, such a mechanism acts as an unlawful contractual penalty for late payment.

– A promotion cannot have a hidden agenda. The discount for e-invoices and timely payment is intended to encourage modern billing, but in practice it becomes a severe penalty for even a slight delay in paying the bill. Such a mechanism violates the law and harms consumers, which is why I have imposed a fine on the Play network operator and obliged it to refund the unduly collected fees – says UOKiK President Tomasz Chróstny.

In the opinion of the President of UOKiK, the mechanism of losing the discount operates as a penalty for late payment of the bill. The provisions of the Civil Code – in particular Article 481(1) and Article 483(1) – clearly indicate that, in the event of a delay in payment, the consumer may be charged interest for the period of delay, but no additional penalties may be imposed on them solely because the transfer was credited after the deadline. Therefore, withdrawing the discount and increasing the subscription fee is contrary to these provisions and, in practice, constitutes a form of contractual penalty that is not permitted by law.

Discount with a catch

P4 is one of the four largest mobile operators in Poland. For over six years, it has been applying rules whereby a delay in paying a bill automatically results in the loss of the discount for e-invoices and timely payments. To take advantage of the discount, customers must meet two conditions: agree to receive electronic invoices and pay their bills on time. If they are late with their payment, they lose the discount in the next billing period – usually PLN 5 for each service. For example, if a given bill includes several telephone numbers or services for which this discount has been granted, the value of the lost discount for each number or service will be added to the invoice, thus increasing the subscription fee instead of decreasing it. For instance, by PLN 15 in the case of two telephone numbers and a fixed-line internet service, or by PLN 25 if the invoice concerns three telephone numbers, a fixed-line internet service and television.

In practice, the consumer therefore suffers double consequences – in addition to the statutory interest for late payment, they pay more for their subscription in the following month, which increases by the value of the lost discount. There have been cases where consumers have also lost their discount when the delay concerned other charges added to the same invoice, such as instalments for equipment, fees for additional services or premium services.

Fine and refund

The President of UOKiK, Tomasz Chróstny, imposed a fine of PLN 108,573,207 on P4 and ordered it to cease the disputed practice. The company must also refund customers the money collected in connection with the loss of the discount for e-invoices and timely payments. The refund will be available to those who, after 30 September 2019, entered into a contract with such a discount, lost it due to a delay in payment, and paid an increased bill amount. The refund will apply to both current and former customers.

Once the decision of the President of UOKiK becomes final, P4 will be required to inform consumers, among others, about the decision, their right to a refund of the fees charged, how to obtain it, and the deadline for claiming the amount due to them. If current customers do not request a refund, their subscriber accounts will be automatically credited with the appropriate amount.

The decision is not final, and the company has the right to appeal to the court.

UOKiK looks into discounts in telecommunications

The decision regarding P4 is another action taken by the President of UOKiK concerning the way discounts are structured and fees are settled by telecommunications service providers. Proceedings are underway against CANAL+, T-Mobile, Orange, Vectra, and Multimedia Polska regarding the practice of penalising consumers by withdrawing one of their discounts for failing to pay their bills on time.