Prices are skyrocketing – customers can’t get out of contracts that automatically pass on price adjustments. This is clearly illegal – an Innviertler has now reached through the consumer protection of the Chamber of Labor admitting the association.
This is a one-year contract with floating rates. With a float rate, the price is usually adjusted monthly in line with the price development on the stock exchange. This adjustment is automatic. The association also charges a fixed price for its float rate. The risk of rising prices is therefore borne exclusively by the customer. If prices fall, these discounts are automatically passed on as well.
Consumer complaints were decisive
A consumer from the Innviertel had taken out a float rate with Verbund. When the monthly amount increased, the consumer wanted to cancel. The association referred to the 12-month contractual commitment and rejected the termination. After the association did not give in to the AK Oberösterreich, the consumer protection started a warning procedure because of the contractual obligation.
Impermissible contract binding
With the float rate, only the customer bears the risk of rising prices. Even with exorbitant price increases, such as recently, the contractual obligation prevents customers from terminating the contract and switching to another supplier. This serious disadvantage is not compensated by the legitimate interest of the company in the long contractual relationship. The binding contract is therefore illegal.
Verbund admits
After the request to waive the use of the contractual clause to bind the contract and the announcement of a lawsuit, the association relented and issued a cease and desist order.
Legal action against Schlaustrom GmbH
Schlaustrom GmbH also offers its customers a flexible rate. Here the price is even adjusted per hour to the price development on the stock exchange and there is also a contractual obligation of twelve months. However, unlike the association, Schlaustrom GmbH was unwilling to issue a strike statement. The consumer lawyers of the AK Upper Austria have instituted the ban, as the Chamber of Labor announced in a broadcast.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
