Last month the English High Court handed down the first decision addressing the substance of the English implementation of the Unfair Commercial Practices Directive. The defendant, a company called Purely Creative, sent letters and scratch cards to a large number of addressees throughout the UK. While prizes could indeed be claimed, Purely Creative made money by charging consumers costs to win the prizes – costs that generally exceded the value of the prizes.
The High Court addresses the trade practices from different angles within the Consumer Protection from Unfair Trading Regulations, which implement the Unfair Commercial Practices Directive in the UK. Apart from examining the practices in the light of the general prohibitions of misleading trade practices and misleading omissions, the court also investigates whether the practices are in breach of paragraph 31 of the black list. This paragraph specifically addresses giving consumers the false impression that they have won a prize, while they have to incur costs to claim the prize (see the judgment for interesting interpretation issues on this provision). The result: the court finds many of the trade practices of Purely Creative unfair, both on the basis of the general prohibitions as on the basis of the black list.
Click here for the full judgment, available on the OFT website. Alternatively, click here for an exclusive chance to become a millionaire.