Press Digest 13.02.2015

Marketing methods and pitfall traps for customers

“If a company provides a service to an inpidual who knows his rights, an agreement between the two can easily be declared void.

Silknet often offers its customers new services as well as special promotions; however, an alleged increase in the cost of living has frustrated people, so countless instant messages from their service provider only adds to their frustration .

What good will such promotions bring if people have to overpay for them? Obviously, those who are short on money do not need faster internet.

According to the “Silknet Double Offer” internet package, if customers paid 25 GEL for 15 Megs in the past, now they will have to buy 10 Megs for 26 GEL.

We tried to contact the Silknet Public Relations Department and asked them some questions regarding the new pay system as well as new regulations; however, they refused to answer our e-mails.

To help you get a better picture, here’s a very “interesting “story regarding these promotions: in June of 2014, within the framework of a Silknet special offer, I became a customer and received 2 interesting TV thematic packages as well as a discount internet package.

As they explained to me, the offer would last until December 31 and if I did not end it myself on that day, it would automatically keep running and my bank account would be automatically billed.

At the end of December, Silknet informed me my account would be billed for the standard value of my thematic package as soon as it was fulfilled. When this didn’t happen, I immediately contacted them; however, they told me that I would be able to withdraw myself from this service no earlier than January 1, meaning that my account would get billed anyway. As they explained, they could not change anything since the service was still active. They tried to placate me by saying that that I would not get billed for the entire offer instantly, but gradually, with every day that passed after the deadline.

While this unpleasant incident did not inflict great financial harm on me, you all will probably agree that it’s very unpleasant when someone tries to deceive you.

In a nutshell, customers’ rights in this country are being systematically violated and no one even knows whether the acting legislation is doing anything about it.

As you know, in May 2012, the customer protection law of 1996 was declared void and this resulted in further restriction of rights for us.

The Association Agreement obliged them to harmonize customer protection laws with EU legislation.

The parliament has already started working on a new Consumer Rights legislation that was initiated by the Committee for European Integration and the NGO sector that protects the customers’ rights to the fullest possible extent.

For further details regarding this issue, we sat down with Lia Todua, a representative of the Strategic Research and Development Center and head of the project “momkhmarebeli.ge” (customer.ge).

- We must differentiate between misleading marketing methods and the vaguely worded customer contracts. The agreement does not need to be printed and signed. A text message by which a customer becomes involved in an offer is an agreement of sorts as well. An agreement must not mislead customers and must give them detailed information regarding the offered service, its risks and benefits. Obligations as well as rights must equally be shared between both parties. If one party is obliged to provide a service to an inpidual who knows his rights, an agreement between the two can easily be declared void.

It’s true that the acting Civil Code cannot forbid anything but it does entitle a customer to sue in case he gets cheated through different marketing methods. However, this alone does not secure their rights since the playing field is not level between customers and such companies. Everyone knows that an entrepreneur is far more informed as well as better prepared legally and financially than a customer.

Thus, law is the only tool that can protect our customers by enabling them to address less expensive legal structures than courts that will nevertheless uphold their rights by returning the money that they were illegally cheated out of.

The EU norms were put in place in September and will fully come into effect in 5 years. One of the chapters of the European Union envisages elimination of misleading marketing methods. The new legislation has, in fact, been fully geared to European directives; however, this legislation can be refined and each term explained more clearly.

The European approach ensures creation of a legal framework for people’s rights as well as tools to protect them.