Case law

  • Case Details
    • National ID: Case C‑388/13
    • Member State: European Union
    • Common Name:UPC
    • Decision type: Court of Justice decision
    • Decision date: 26/04/2012
    • Court: Court of Justice of the European Union
    • Subject:
    • Plaintiff: Nemzeti Fogyasztóvédelmi Hatóság,
    • Defendant: UPC Magyarország Kft.,
    • Keywords: misleading commercial practices, professional diligence
  • Directive Articles
    Unfair Commercial Practices Directive, Chapter 2, Article 5, 1. Unfair Commercial Practices Directive, Chapter 2, Article 5, 2., (a) Unfair Commercial Practices Directive, Chapter 2, Section 1, Article 6, 1.
  • Headnote
    (1) Directive 2005/29/EC must be interpreted as meaning that the communication, by a professional to a consumer of erroneous information must be classified as a ‘misleading commercial practice’, within the meaning of that directive, even though that information concerned only one single consumer.

    (2) Directive 2005/29 must be interpreted as meaning that, if a commercial practice meets all of the criteria specified in Article 6(1) of that directive for classification as a misleading practice in relation to the consumer, it is not necessary further to determine whether such a practice is also contrary to the requirements of professional diligence, as referred to in Article 5(2)(a) of that directive, in order for it legitimately to be regarded as unfair and, consequently, prohibited in accordance with Article 5(1) of that directive.
  • Facts
    In April 2010, a private individual, Mr Szabó, who was a long-term subscriber with defendant, a provider of cable television services, and who wished to terminate the contract which he had concluded with that company, requested the latter to inform him of the specific period to which an invoice issued in 2010 related, given that that invoice did not contain information relating to that period.

    In its reply to Mr Szabó, defendant stated that the most recent annual invoice related to the ‘period between 11.01.2010 and 10.02.2011 inclusive’.

    Mr Szabó, who wished to ensure that the end of the contract that he had concluded with UPC would coincide with the last day of service already paid for, requested that the contract be terminated with effect from 10 February 2011.

    The provision of services was not terminated until 14 February 2011 and, on 12 March 2011, Mr Szabó received from UPC a document requesting him to pay the sum of 5 243 Hungarian Forints (HUF) in respect of arrears of payment for the period up to 14 February 2011.

    Mr Szabó lodged a complaint with the Budapest Főváros Kormányhivatala Fogyasztóvédelmi Felügyelősége (Consumer Protection Inspectorate under the governmental administration of Budapest). By a decision of 11 July 2011, that inspectorate ordered defendant to pay a fine of HUF 25.000 in respect of an unfair commercial practice, in accordance with Law No XLVII of 2008 on the prohibition of unfair commercial practices in relation to consumers. That decision was upheld on 10 October 2011 by the Nemzeti Fogyasztóvédelmi Hatóság, plaintiff in this case.

    In an action brought by defendant, the Fővárosi Törvényszék (Budapest Municipal Court) varied the decision of that national authority of 10 October 2011 and set aside the fine imposed on that company. That court held that the question of the infringement of the requirement of professional diligence had to be examined also in the case where erroneous information had been provided and that such an infringement could not be established, since that examination showed that the professional concerned had not intended to mislead the consumer. According to the Fővárosi Törvényszék, defendant's conduct did not constitute continuous conduct and an isolated administrative error relating to a single client could not be classified as a ‘practice’. The information provided was not misleading, but merely erroneous.

    Plaintiff appealed to the Kúria (Hungarian Supreme Court) and disputed the contention that the existence of a ‘commercial practice’ could not be confirmed in the case where the conduct which is the subject of the complaint concerns only one single consumer. Articles 6 to 9 of Directive 2005/29, it argued, use the word ‘consumer’ always in the singular and that directive must be interpreted in accordance with the objective which it pursues.

    It was in those circumstances that the Kúria decided to stay the proceedings before it and to refer two questions to Court of Justice for a preliminary ruling.
  • Legal issue
    (1) Must Directive 2005/29/EC be interpreted as meaning that the communication, by a professional to a consumer of erroneous information is to be classified as a ‘misleading commercial practice’, within the meaning of that directive, even though that information concerned only one single consumer?

    (2) Must Directive 2005/29 be interpreted as meaning that, if a commercial practice meets all of the criteria specified in Article 6(1) of that directive for classification as a misleading practice in relation to the consumer, it is not necessary further to determine whether such a practice is also contrary to the requirements of professional diligence, as referred to in Article 5(2)(a) of that directive, in order for it legitimately to be regarded as unfair and, consequently, prohibited in accordance with Article 5(1) of that directive?
  • Decision

    (1) Basing its decision on the high level of consumer protection that Directive 2005/29 aims to achieve, along with the wide scope ratione materiae given to the Directive to accomplish that goal, the court reiterated that the sole criterion referred to article 2(d) for qualification as a commercial practice is that the trader’s practice must be directly connected with the promotion, sale or supply of a product or service to consumers. As a consequence, the communication of information as made by defendant to Mr. Szabó constituted a commercial practice.

    (2) The court reiterated the judgment it handed down in CHS Tour Services (C 435/11, EU:C:2013:574). According to that judgment, Article 6(1) of Directive 2005/29 was given a restrictive interpretation and the court stated that there was no mention of professional diligence, laid down in article 5(2)(a) of that Directive, as a consideration for whether a commercial practice was misleading.

    URL: http://curia.europa.eu/juris/document/document.jsf?text=&docid=122164&pageIndex=0&doclang=EN&mode=lst&dir=&occ=first&part=1&cid=1030359

    Full text: Full text

  • Related Cases

    No results available

  • Legal Literature

    No results available

  • Result
    The court referred the case back to the national court.