SMS Solutions told to end unfair commercial practices

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The Consumer Rights Protection Centre (PTAC) has imposed an obligation on SMS Solutions (“CDR”) to immediately terminate unfair commercial practices in connection with the failure to provide information on high-cost services, the PTAC said February 9.

The company's commercial practices are implemented by advertising, offering and selling premium content and fee subscription services available on sites such as lv.appliplay.com, lv.playbox.fun, flirtavieta.com, lv.gamistream.com, mobiefun.com/lv/wclive, totomobi.com. The services are provided by the company's partners, but the company maintains and provides a technical solution that is used to order the services and obtain their subscription fees from consumers.

In total, between January 1 2022 and January 27, 2023, the PTAC received complaints from 30 consumers and provided 108 consultations in the context of unsolicited subscriptions. According to information submitted by Latvian mobile service providers, it is concluded that between January 1 and 15 September 2022, mobile operators registered a total of more than 2,000 complaints that could be related to the content services of the CDR.

In most cases consumers were unaware of the fact that they entered into a subscription agreement, sometimes for a long time, racking up bills.

The PTAC concluded that commercial practices carried out by the company, in accordance with the provisions of the Unfair Commercial Practices Prohibition Law, were considered to be unfair, professional, misleading, and aggressive.

The PTAC has decided on a provisional settlement by imposing a legal obligation on SMS Solutions to immediately terminate unfair commercial practices.

The addressee may appeal the decision in accordance with the procedures specified in regulatory enactments in the Administrative District Court. The appeal of a decision does not stop it from working.

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