A costly lesson from Tutlo – President of UOKiK presses charges
  • English online? Check how much you will pay if you change your mind.
  • Tutlo customers were unaware of the costs associated with withdrawing from their contracts.
  • The entrepreneur faces a penalty of up to 10 percent of its annual turnover.

Online language courses are very popular. Online platforms offer one-on-one contact with teachers, easy access to materials, and flexible schedules. This is an increasingly popular model of education for both children and adults. However, the Office of Competition and Consumer Protection has also received complaints. Customers of Tutlo, an online English school, reported being misled about the terms of withdrawing from their contracts. Following an investigation, the President of UOKiK brought charges against the company. 

Unclear fees

The company offers, among others, “unlimited contracts” concluded for 24 months. They are divided into three stages and are intended to guarantee complete freedom in using the classes. For each stage of learning, the contract provides for the duration and suggested number of lessons. This means that the student can freely decide when to use all the lessons. Lessons not used at a given stage of learning are transferred to the next stage. A consumer who has concluded such a contract may withdraw from the course without a valid reason only after the time provided for the first stage has elapsed.

Consumers can pay the course fee in instalments. However, upon withdrawing from the course, consumers learn that the instalments paid up to that point are insufficient to cover the full remuneration demanded by the company. Despite terminating the contract, they may still be required to pay the difference between the sum of these instalments and the amount of remuneration calculated by Tutlo. Upon withdrawal, consumers are also obliged to pay for all the lessons suggested by the company for the first stage of the course, regardless of whether those lessons with the teacher actually took place.

The payment terms outlined in the contract may be unclear to consumers. The company employs terms such as “fixed part fee” and “efficiency part fee”, which are not clearly defined in the contract. As a result, consumers cannot independently determine the financial implications of withdrawing from the course.

As a result, consumers believe that terminating the contract also ends their financial obligations. Meanwhile, due to unclear terms of the contract, they have to pay the difference between the sum of the instalments paid and the amount of remuneration demanded by the company.

Imposing an agreement

After the consumer terminated the contract, the company presented them with an agreement confirming the amount of remuneration calculated by Tutlo and a waiver of further claims by the consumer. The document was sent electronically in a way that implied its acceptance was necessary to end the cooperation. Signing the agreement could, in fact, have worsened the consumer’s situation. In the event of a dispute with the company, the consumer could face difficulties pursuing claims or proving that the remuneration calculated by Tutlo was unjustified.

- Consumers using online language courses should receive clear and comprehensive information about all costs, including those related to the learning process and the potential consequences of withdrawing from the course. This is fundamental information that directly influences the consumer’s desire to use the offer, says Tomasz Chróstny, President of UOKiK.

If the charges are confirmed, Tutlo may face a fine of up to 10% of its turnover.

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