NCAH examined subscriber contracts of communications service providers

During the inspection of individual subscriber contracts (ISC) concluded in writing by almost one hundred service providers operating in the fixed location and mobile telephone as well as the internet and programme distribution markets, the Authority could not find a single service provider the contracts of which fully complied with legislative requirements.

Under the Electronic Communications Act, the Authority issued a condemning decision against all inspected service providers and called upon service providers to amend the standard contracts applied by them. NCAH plans to examine compliance with legislative provisions through further checks and ex-post checks. Should a breach of law be established again during the repeated check, the Authority will impose a fine on the service provider in breach.

When analysing the results of the inspection, it was quite striking that while subscriber data together with other terms binding the subscriber (e.g. fees of the service) were determined in the ISCs in full details, the rights of the subscriber and obligations of the service provider were not or not fully specified. In more than half of the cases, ways of communicating service errors and of submitting complaints, rights of the subscriber upon breach of the provisions pertaining to the suspension of the service, the rules of repayment of the fee, the amount of the non-performance penalty due to the subscriber and other fees relating to the use of the service were not laid down.

Based on the inspection criteria, the mobile service providers performed the least worse. The ISCs of the three service providers were in default with regard to almost one third of all the inspection elements.

The worst result was produced by the internet market where the majority of the examined service providers were in default with regard to more than half of all the inspection elements.

Subscribers may get information on their rights and obligations "missing” from the ISCs but laid down in the general contracting terms of the service provider in the authentic register on the website of NCAH (http://www.nhh.hu/hirszolg) and on the respective websites of service providers.

General contracting terms (GCT) and individual subscriber contracts are part of the subscriber contracts concluded between the service providers and the subscribers. Consumers, being contracting parties, may not participate in the formulation of subscriber contracts, therefore the obligatory content elements of contracts are laid down by the legislation on communications for protecting the interests of subscribers. GCT governs the general procedures of the service provider affecting all of its subscribers and the rights and obligations of subscribers and service providers. In addition to the data of the contracting parties, the designation of the service and the fee of the service, the ISCs should contain the rules of legal institutions relating to the contract (e.g. breach, termination and amendment of the contract) and references thereto in the GCT as well as the ways of communicating service errors and of submitting complaints. In order to protect the interests of subscribers, the National Communications Authority, Hungary gives priority to full compliance with the content elements of ISCs stipulated by communications legislation as mandatory.

Context

• the name and address of the provider of electronic communications services, the contact details and office hours of customer service and the call service and the URL of its website; the name, address, residence or seat of the subscriber;
• for non-natural person subscribers, the company registration number or other registry numbers of the subscriber and its bank account number;
• the consent of the subscriber to the management of its data other than the data file provided for in Section 157(2) and to the use of data in the data file for purposes other than those determined in this Act;
• the duration of the contract;
• the deadline for the commencement of the service and for the installation of the connection;
• the extent of service fees and of other related fees and costs, the due date and method of payment of the fees;
• terms of the termination of the contract and a reference to the points of the general contracting terms laying down the conditions for suspending the contract and restricting the service;
• a reference to the points of the general contracting terms laying down the rights of the subscriber in respect of the legal consequences of breach of contract, including in particular, the breach of the provisions governing the quality and the suspension of the service, the rules of repayment of the fee, and the amount of the non-performance penalty due to the subscriber;
  possible ways for communicating errors and submitting account complaints, a reference to the points of the general contracting terms laying down the rules of handling error communications and account complaints and giving information on the provision of maintenance services;
• terms of amending the contract, the rights of the subscriber in case of amending the contract;
• information to the effect that the subscriber is entitled to refer any eventual dispute to the Authority and reference to the points of the general contracting terms indicating the exact names and contact details of the competent authorities;
• the place of installation of the subscriber's terminal equipment, when fixed, and the subscriber number. In individual subscriber contracts concluded in writing, the parties should determine the place of the subscriber's termination point as being the liability limit of the service provider. With regard to the determination of the subscriber's termination point, the point indicated generally by subscribers is applicable, the location of which may be outside the premises of the subscriber only upon the express request of the latter;
• declarations and data regarding carrier service providers selected by pre-selection;
• a declaration on requesting a detailed account attachment;
• the availability of the general contracting terms and a declaration by the subscriber to the effect that he or she is familiar with and accepts the contents of this contract.