Vodafone has angered its customers with price increases for fixed-line internet. Consumer advocates believe that increasing the price of current contracts is inadmissible – and have now filed a class action lawsuit.
Consumer advocates have filed a class action lawsuit against Vodafone at the Hamm Higher Regional Court due to price increases in fixed-line internet. The Federal Association of Consumer Organizations (vzbv) announced yesterday that the telecommunications provider is not allowed to increase the price of current contracts.
The background to this: In the spring, Vodafone began raising the prices for all of its landline tariffs for cable and DSL by five euros per month. For gigabit cable customers, for example, the monthly price went up from 40 to 45 euros. In total, around ten million customers were affected.
One-sided Price increases in criticism
Vodafone granted its customers a special right of termination. But that is not enough for consumer advocates. From their perspective, the Düsseldorf-based internet company should not have unilaterally increased the prices for ongoing contractual relationships, i.e. without renegotiating with customers.
“The vzbv considers Vodafone’s price increases to be ineffective,” says association boss Ramona Pop. The class action lawsuit is aimed at ensuring that millions of Vodafone customers can get their money back directly. “An additional cost of five euros per month is a lot of money for many people.”
How consumers can defend themselves now
But what do Vodafone customers have to do to defend themselves against the price increase? Not much: you just have to register in a so-called lawsuit register, which will probably be opened in a few weeks. The class action lawsuit makes it easy for consumers to defend themselves against the increase, said vzbv boss Pop.
In fact, consumers have it much easier than before; With the new class action lawsuit, their position is improving. You no longer have to seek confrontation with the company yourself. Rather, the court – after a verdict positive for consumers – appoints a so-called administrator who receives money from the losing company. He checks the consumers’ claims and then transfers them an amount. The possibility of a class action lawsuit has only recently existed in Germany; the corresponding federal law came into force in mid-October.
Vodafone points to inflation
Meanwhile, Vodafone emphasizes that it has adhered to applicable law. The company justifies the increase with higher costs for energy and materials, for example, and points the finger at others: The majority of German companies have increased prices in recent months due to inflation, says a company spokesman.
In fact, other telecommunications providers also became more expensive this year, for example the United Internet subsidiary 1&1 increased its prices. However, the class action lawsuit is not directed against these companies. You can’t sue all companies at the same time, but first put Vodafone, the pioneer in price increases, in its place, says the vzbv.
A procedure with a signaling effect
The proceedings against Vodafone send a certain signal effect for companies. It’s only about five euros per month, which every customer could get back. Depending on how many customers take part, it could be financially painful for Vodafone if it loses in court.
In addition, a court decision for consumers could have a deterrent effect on other companies – companies could become more cautious about price increases in current contracts in the future.