Lycamobile Ordered to Comply with Consumer Protection Laws, Including Electronic Communications Contracts
Paris, December 2, 2024 – The French Ministry of Economy has issued an injunction against Lycamobile S.A.R.L., ordering the company to adhere to consumer protection provisions set forth in the French Consumer Code, particularly those related to electronic communications contracts.
The injunction stems from an investigation conducted by the Directorate-General for Competition, Consumer Affairs, and Fraud Prevention (DGCCRF) into Lycamobile’s commercial practices. The investigation revealed several irregularities, including:
- Lack of transparency in contracts: Contracts were not sufficiently clear and concise, making it difficult for consumers to fully understand the terms and conditions.
- Unfair termination fees: Termination fees were excessive and disproportionate to the actual costs incurred by the company.
- Misleading advertising: Lycamobile’s marketing campaigns contained inaccurate or misleading information about its services.
The injunction issued by the Ministry of Economy requires Lycamobile to rectify these irregularities within two months. The company must:
- Revise its contracts to ensure clarity and transparency.
- Reduce termination fees to a reasonable level.
- Cease all misleading advertising practices.
Failure to comply with the injunction within the specified timeframe will result in fines of up to €15,000 per day.
The injunction is a significant victory for consumer rights in France. It sends a strong message that businesses must adhere to laws designed to protect consumers from unfair and deceptive practices.
About Lycamobile
Lycamobile is a global telecommunications company that offers prepaid mobile services in over 60 countries. It is known for its low-cost international calling rates and its focus on immigrant and low-income communities.
About the DGCCRF
The DGCCRF is the French government agency responsible for enforcing consumer protection laws. It investigates complaints, conducts inspections, and takes legal action against businesses that violate consumer rights.
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economie.gouv.fr a new article on 2024-12-02 13:42 titled “La société « LYCAMOBILE S.A.R.L. » enjointe de respecter les dispositions protectrices du Code de la consommation notamment en matière de contrats de communications électroniques”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
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