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The Authority for Consumers & Markets (ACM) supervises consumer law. Usually, a company first receives a warning and the opportunity to make adjustments, but in the case of serious or persistent violations, the ACM can impose heavy fines — running into the millions. Misleading information, incomplete details, and false “from-to” prices are classic examples.
Entrepreneurs selling to consumers must adhere to strict rules. The ACM can take action, whether or not following complaints. Four examples show how far this can go.
1. Check for updates on smart devices
Companies must adequately inform consumers about the essential features of their products. The ACM found that while sellers explain what a smart (IoT) device can do, they provide insufficient information about the update policy — even though devices without updates eventually become unusable and unsafe. Following intervention by the ACM, MediaMarkt, Coolblue, and bol.com, among others, began communicating more clearly about this.
2. Free must really be free
Provider Stay Healthy Products heavily promoted “free” samples, but the fine print revealed it was a conditional purchase of 60 euros: anyone who did not return the products within 14 days was obligated to pay. Many consumers unexpectedly received a debt collection letter. The ACM ruled that this practice was misleading; the company discontinued the “free” offers, and consumers who had already received products were allowed to keep them without paying.
3. Fines for incorrect information on the website
The ACM can also impose fines. For instance, several telecom providers received fines for providing incorrect and incomplete information about their subscriptions — for instance, by failing to mention one-off costs, or by not making it clear that an “unlimited” data bundle was only valid within the EU, or that an “unlimited” call bundle actually had a limit. Cateautje Hijmans van den Bergh, a board member at the ACM, emphasized that companies must not communicate incompletely on their websites, as this is an important channel for consumers. The fines ranged from €2,715,000 (Tele2) to €3,907,000 (T-Mobile).
4. Fine for false “from-to” prices
It is not only large companies that are fined. Furniture retailer Seats and Sofas received an administrative fine of 350,000 euros because it displayed “from-to” prices while the higher “from” price had never actually been applied. As a result, consumers wrongly got the impression that they were receiving an extra advantageous offer. The retailer challenged the fine, arguing that competitors did the same without being fined, but the Rotterdam District Court (ECLI:NL:RBROT:2019:4155) ruled that the ACM had rightly imposed the fine.
Frequently Asked Questions
When does the ACM impose a fine?
Usually, a warning is issued first, offering the opportunity to make adjustments. In the case of serious or persistent violations — such as deception — the ACM can impose an administrative fine, which can be substantial.
May I use “from-to” prices?
Only if the “from” price has actually been applied previously. A higher reference price that was never actually charged is misleading and may result in a fine.
Does this also apply to small business owners?
Yes. Consumer law applies to everyone who sells to consumers, online or offline. Smaller entrepreneurs also risk enforcement.
Prevent intervention by the ACM
These cases demonstrate that consumer law is not a matter of choice. The legal experts at MKB Juristen review your general terms and conditions, price communication, and information obligations so that you do not become the next case for the ACM. View our expertise in contract law or contact us.