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Kassa Must Rectify Broadcasts about Pretium

Court of The Hague in Preliminary Relief Proceedings, 29 June 2009

Pretium is a telecom company. Consumers are called by a telemarketing company on behalf of Pretium, and upon agreement by telephone they become a customer of Pretium. Afterwards, quite a lot of customers complain about Pretium, and television programs such as Tros Radar and Vara's Kassa regularly bring critical reports about this.


But the question is whether the complaints about the conclusion of agreements with Pretium by telephone are correct. This can only be assessed by playing back the telephone conversation, the recording of which is compulsory. It can then be determined whether the consumer was misled and has therefore complained correctly, or whether the consumer consciously agreed by telephone to the offer of Pretium, but later on, for whatever reason, wishes to reconsider this decision.

Kassa gave ample attention to Pretium in a number of TV broadcasts. In a broadcast in 2007 the Consumer Authority and the Ombudsman, who allegedly received more than 1,000 complaints, spoke about the matter, and reference was made to KPN, which allegedly received 2,500 complaints. In 2007 Pretium immediately started legal proceedings and won the proceedings against the Consumer Authority, the Ombudsman and KPN, because these parties had acted negligently because no violation of the rules had been established. Before, Pretium also successfully brought an action against Kassa. Meanwhile, at the end of 2008, the Consumer Authority imposed a penalty on Pretium because in 41 telephone conversations of the 1,000 complaints that were investigated, Pretium had provided insufficient clear information to the consumer. Pretium has lodged an objection against this decision. These proceedings are still pending. Against this background Kassa made four broadcasts about Pretium at the start of 2009. In these broadcasts Kassa referred to large numbers of complaints, without explaining in this respect that the merits of these complaints were not established. It is true that Kassa has contacted 300 of the 1,200 complainants, but Kassa actually only has recordings of two telephone conversations in its possession. These two recorded telephone conversations are clearly in conflict with the rules, as Pretium has acknowledged. Pretium took measures against the call center employees and stated that this concerned two incidents from which it may not be concluded that all other complaints are valid too. Kassa handed over 'a few kilos of complaints' to the State Secretary, but did not provide Pretium with a copy of these complaints. In Kassa's broadcast Pretium was given a brief opportunity to react to the accusations.

As a result of these broadcasts Pretium initiated preliminary relief proceedings against the Vara. Pretium won the proceedings on most points. Kassa has to remove the broadcasts from its website, and has to broadcast a rectification and place it on its website, with the following text:

RECTIFICATION REGARDING PRETIUM TELECOM
During broadcasts of Kassa of 14 February and 4 April 2009 the Vara has repeatedly made negative and accusatory statements about the sales methods of Pretium Telecom. The Vara has discredited Pretium Telecom without having performed an objective investigation and without there being sufficient underlying facts. In a judgment of 29 June 2009 the Court of The Hague in preliminary relief proceedings ruled that the Vara thus acted negligently and therefore unlawfully towards Pretium Telecom. The Court in preliminary relief proceedings has therefore ordered the Vara to broadcast this rectification and to place it on the Kassa website.

This rectification must remain on the website for four weeks. The most important consideration of the Court is that Kassa has repeatedly referred to large numbers of complaints, without explaining that the merits of the complaints have not been established yet. In the telecom market telemarketing is an accepted way of attracting new subscribers, provided that certain conditions are met. Kassa should have given Pretium more opportunity to defend itself. A 20-second reaction in a 20-minute broadcast does no justice to hearing Pretium's side of the argument, which Pretium has a right to.

Not all Pretium's claims are awarded. The claimed prohibition that in future the Vara will refrain from statements that Pretium is guilty of attracting subscribers in an improper manner without a valid reason and own investigation is denied. The Court is of the view that this is formulated too generally: it would lead to a too large restriction of the freedom of expression. The Court also rejected the claim that Kassa should comply with the journalistic standards with respect to providing the opportunity to hear the other side of the argument (as set out in the Journalistic Guidelines). The Court furthermore respects the fact that Kassa does not wish to disclose its sources. In addition, the Vara does not have to place ads containing the rectification in national newspapers. The rectification must be made public in the same manner as the original publication, namely via television and the Internet.

Vara has announced that it will lodge an appeal. To be continued!

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Update Jens van den Brink:
Since the VARA ruling Pretium lost proceedings against regulator OPTA [in Dutch] and broadcaster TROS [in Dutch].

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Otto Volgenant

Tel: +31 20 5506 637
E-mail: otto.volgenant@kvdl.nl

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