Reader's Digest Przegląd - decision of UOKiK

Demanding payment for products never ordered by consumers, failure to provide information regarding the intention to conclude an agreement, suggesting that consumers might have won a prize – are just few of the ten practices of Reader’s Digest Przegląd, questioned by the President of the Office. The undertaking was imposed a fine over PLN 4.3 mln

Reader’s Digest Przegląd is a publishing house selling products such as books, diet supplements, publications about music on the Internet or by mail order. The company also organizes contest known as Wielka  Loteria Reader’s Digest (Reader's Digest Great Sweepstakes). When advertising its products and sweepstakes, it sends letters to consumers (via regular mail or e-mail) containing, among others information about opportunities to participate in contests with prizes - primarily in the Reader's Digest Great Sweepstakes, its publishing offer, sweepstakes documents, postage-paid envelopes with inscriptions YES/NO, questionnaires on how to collect the prizes. To participate in the Reader's Digest Great Sweepstakes, one must return the documents within the prescribed period of time. Returning correctly completed sweepstakes documents also implies placing an order for the offered goods (e.g. books).

Doubts of the President of UOKiK were arisen by the letters sent by the company, which were the subject of consumer complaints. The information obtained indicated that consumers received from Reader's Digest Przegląd demands for payments for products that they never ordered. The President of UOKiK initiated proceedings against the undertaking in June 2011.

During the proceedings, the Office found that the Reader's Digest Przegląd sought payment for the delivered products, which consumers never ordered, at the same time threatening them with legal action. It is illegal for traders to demand payment for products not ordered by consumers. Such actions are aggressive market practices.

Moreover, the President of UOKiK questioned nine other practices of Reader's Digest Przegląd. One of them is the failure to inform consumers in a clear and understandable way about the intention to conclude an agreement. The company sends letters containing its publication offer and sweepstakes announcements, offering special privileges, e.g.: PLEASE ACCEPT A CHANCE TO WIN! Simply return the document before the deadline! Imagine how many dreams can come true for PLN 555 000, or: Send in the enclosed envelope a YES answer, and you’ll be able to discover our book. At the same time the amount of information about the sweepstakes organised by the company is disproportionately greater as compared to information on the offered sales contract. According to the findings of UOKiK, the letters do not communicate directly about the possibility of purchasing books, however they mention they can be obtained as one of the granted privileges granted returning completed sweepstakes documents. As it turned out, this implied placing of an order for the company’s publishing offer.

Moreover, the documents are prepared in such manner as to raise consumer confidence and encourage them to order the books: they give the impression of official correspondence, include business cards and pictures of staff, guidelines as to what to do if the consumer wins the prize. In addition, they are so worded that a consumer who receives them may feel honoured and expect to win (e.g. while your neighbours look in vain inside their letter-boxes, looking for these sweepstakes documents, you are in a good situation, that you are on the way to the 21st Great Sweepstakes Final).

In connection with these practices, many consumers were misled. They could have responded to the company’s offer, thinking that they will take part only in the prize draw without having to place an order or receiving a certain product – i.e. one of the honours conferred upon them.

The President of the Office found that consumers did not receive reliable information, and ordered to cease the questioned practices. For the violation of collective consumer interests, the President imposed on the Reader's Digest a fine of PLN 4 395 489. In addition, the company must publish the decision on its website and a specified announcement in nationwide daily newspaper. The decision is not final, because the undertaking appealed to the court.

Consumers may obtain free of charge assistance in seeking their rights from consumer ombudsmen, or by calling toll-free number 800 007 707, Monday to Friday from 9 AM to 5 PM. Pursuing claims can also be facilitated by the Act on combating unfair commercial practices, which gives consumers the opportunity to bring an action in their individual disputes with undertakings. In the course of such proceedings, the court will verify whether the questioned market practice is unfair. In this case, it is the undertaking that must prove to the court that its market practice did not mislead the consumers. Answers to frequently asked questions can be found at UOKiK’s website.

Read the press release.