Consumer protection agency sues Bulgarian cellcos for ‘unfair’ contracts

16 Sep 2014

Bulgaria’s Commission for Consumer Protection (CCP) has filed class actions against the country’s three major telecoms providers – Mobiltel (M-Tel), Cosmo Bulgaria (GloBul) and Bulgarian Telecommunications Company (BTC, operating as Vivacom) – due to the high penalties subscribers need to pay for early termination of contracts, domestic newspaper Capital reports. According to a clause in the general conditions of the aforementioned operators’ fixed-term contracts, in the event of termination users must pay all monthly fees until the expiry of the contract, regardless of the reason for contract cessation. The authority has highlighted that such terms are unfair, and are in direct breach of the Law on Consumer Protection (Art. 146, Par. 2). The CCP also disclosed that it had sent letters to the three mobile operators, in which the authority outlined its recommendations to correct the provisions within a specific deadline. As the aforementioned telecom operators reportedly failed to comply with the recommendations, the CCP is now seeking to declare the contract clauses void through class actions.