site.btaSupreme Administrative Court Upholds Consumer Protection Commission's Order Against Vivacom's Contract Termination Penalties

Consumer Protection Commission (CPC) Chair Maria Filipova said on Wednesday that the Supreme Administrative Court (SAC) has upheld the decision of the Sofia Administrative Court to suspend Vivacom Bulgaria's request to halt the CPC's order banning unfair practices related to contract termination penalties.

The Supreme Administrative Court confirmed the ruling of the Sofia Administrative Court, which rejected the mobile operator’s second request to suspend the CPC’s order. The order required Vivacom Bulgaria to refrain from charging more than one penalty or a penalty exceeding the amount stated in the contract in cases of early termination. The measure was prompted by Vivacom Bulgaria’s practice of not only imposing a penalty equal to three monthly fees but also adding additional charges for granted discounts.

The CPC noted that Vivacom Bulgaria used vague contractual wording, allowing it to interpret the clause ambiguously and in its favour. As a result of the Commission's intervention, Vivacom Bulgaria acknowledged that the contract terms were unfair and agreed to amend them. However, the company later used these very amendments as grounds to request a suspension of the order, arguing that the new clauses contradicted the CPC’s prohibition. The court dismissed these claims, stating that the operator was aware of the issue when the order initially took effect.

In a separate case, the court also upheld the CPC’s preliminary ban preventing Vivacom Bulgaria from indexing monthly fees.