Many electricity suppliers do not comply with the legal requirements to inform consumers about the right to withdraw from the contract in a clear and understandable way.
The Norwegian Consumer Protection Authority has sent information to the electricity industry with guidance on how the industry can comply with the regulations. We also hosted an industry webinar earlier this week. This is to make sure the industry understands the importance of compliance consumers included in the Act about the right to withdraw from the contract. Over 100 industry participants took part in the webinar.
Consequences of breaching the information obligation regarding the right to withdraw from the contract
Most energy suppliers sell energy contracts to consumers through online sales, app sales, doorstep sales, stand sales or telephone sales. Pursuant to the Act on the right to withdraw from the contract to consumers in all these forms of sale is entitled to a number of information about the right to withdraw from the contract before concluding the energy contract.
Many energy suppliers break the law
Unfortunately, Forbrukertilsynet sees that many energy suppliers violate the legal requirements regarding proper information about the right to withdraw from the contract. Apart from breaking key laws consumer protection in the Act on Withdrawal from a Contract, together with the consequences of applying sanctions from the Norwegian Consumer Protection Authority, this could potentially also have other serious consequences for energy companies.
The Act on the right to withdraw from the contract entered into force in 2014. The energy industry, due to the sales methods it mainly uses, should be aware of the obligations of the energy supplier under the Act on the right to withdraw from the contract.
By considering specific cases and controlling several processes of concluding contracts with energy suppliers and recent media reports weeks, Forbrukertilsynet noted that many energy suppliers nevertheless did not and do not comply with the requirements in the Right of Withdrawal Act.
Forbrukertilsynet expects the electricity industry to take action
– In recent months, we have held meetings with both large and small suppliers electric energy on the requirements arising from the Act on the right to withdraw from a contract. We see that the industry needs thorough cleaning, says the director of Norwegian Consumer Protection Authority, Trond Rønningen.
He adds that the systematic violation of the right of withdrawal is serious and contributes to the weakening of consumer confidence in the whole electricity industry.
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The Norwegian Consumer Protection Authority expects suppliers electric energywho currently do not meet the requirements of the Right of Withdrawal Act will immediately clean up and start complying with the law. The industry has now received precise guidance via an information letter sent and a webinar organized.
After the turn of the year, Forbrukertilsynet will check whether suppliers electric energy comply with the rules contained in the Act on the right to withdraw from the contract. We expect that by then everyone will have arranged their interests in accordance with the requirements of the Right of Withdrawal Act. If there are still suppliers who do not comply with the law, financial sanctions can quickly result.
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Source: Forbrukertilsynet
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