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The fact that Sats customers were automatically transferred to a digital subscription during the crown crisis is a violation of the law, according to the Norwegian Consumer Agency. Now they are warning the Sats about a one million fine. The training giant disagrees, but will comply with the Authority’s requirements.
GIANT WORKOUT: Sats is the largest training chain in the Nordic region and has had to close hundreds of gyms as a result of the crown crisis.
Stian Lysberg Solum
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– We have worked back and forth with Sats in this case, and we continue to support ours, that the practice of Sats is contrary to the Marketing Law, that is, that payment cannot be demanded when there is no agreement about it, he says Frode Elton Haug, legal director of the Norwegian Consumer Agency.
The audit now warns that Sats must comply with the order before September 17, otherwise a coercive fine of NOK 2 million will be issued, the audit reports to E24.
The Norwegian Consumer Agency has never imposed a larger fine, but according to Haug it has imposed a fine of the same size.
Throughout the spring and summer, there has been disagreement over whether Sats had a chance to move its customers to a digital offering, as gyms had to close in the wake of the crown crisis.
Because when the centers were forced to close their doors and turn off the lights in mid-March, clients had to settle for video lessons and other digital services.
Existing clients had four days to choose between different types of compensation when the centers were closed. If they chose not to respond to the query, Sats stated that the members would automatically become digital subscribers.
The Norwegian Consumer Agency believes that this is a violation of section 11 of the Marketing Act.
Sats has rejected all charges of crimes, but will now comply with the requirements of the Authority.
SATS MANAGER: Sondre Gravir acknowledges that they have not done it perfectly during the crisis, but stresses that his opinion is that customers are satisfied with the digital offer during the crisis.
Anita arntzen
Fee: no payment required
– We have received the notified decision, and so far there are no new moments there. We note that our legal assessment is different from that of the Norwegian Consumer Agency, comments the head of Sats, Sondre Gravir to E24, who adds that they have already sent their response to the audit.
– We also feel that we have adjusted the offer to the best for our users, he says.
However, he points out that the most important thing for them is to finish the case well so that users are satisfied.
– We will accept, therefore, the premise of the Authority and we will take the requested measure, that is, not to demand payment from those who have not paid the digital membership. With this, the fine will also expire, says Gravir.
– Does this mean that you also reimburse customers who have paid for the digital offer, if you have not actively accepted the digital training?
– No, but as we have said, many are satisfied with this offer, and if you feel unfairly billed, just get in touch, and we will find a solution.
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– Should pay
In addition to the automatic transfer, the Norwegian Consumer Agency also believes that Sats misled consumers about the length of the notification period.
During the spring and summer, Sats’s lawyers and the Norwegian Consumer Agency have discussed the case through several letters and, in the end, the audit concluded that Sats clients should get their money back for the digital membership or obtain the acceptance of the transfer.
– We continue to encourage Sats to return the money to those customers who have already paid for the digital subscription without having approved it.
In a letter from Sats to Forbrukertilsynet in June, the chain’s lawyer writes that it does not seem reasonable for those members who did not respond to emails about compensation to receive the digital training for free or to be excluded from the offer.
Has received 26 complaints
A possible refund would mean huge sums for Sats, which had 301,000 customers in Norway at the end of March. Sats claims that more than 600,000 users have started using.
Gravir says the training chain would have looked at the matter differently if fewer people had used the offer.
The Norwegian Consumer Agency has received a total of 26 complaints from consumers reacting to Sats’ handling of the closure.
Legal Director Haug says this is a large number of complaints in such a case. In addition, the Consumers Council had received between 80 and 90 complaints on the issue in June, according to Haug.
– Are there many cases with you that go as far as a warning about a penalty fee?
– No, of several hundred cases that are processed each year, only 8-10 end up being notified of decisions.
