Consumer rights organisation DECO has spotted that the current laws allow Portugal's avaracious telecom companies to charge installation costs if the customer cancels the contract within the statutory 14 days cooling off period.
As the law stands, companies legally can charge up to €200 under the new law regulating distance contracts.
The law does state that customers can be charged a daily rate for the equipment but it does not disallow the charging of installation fees, normally in a range between €80 and €200, depending on the supplier.
DECO warns that these expenses "until now had never been charged to consumers."
In a statement today, the association said that "given the gravity of the situation" it has already contacted the operators and has sent its concerns to the National Communications Authority (ANACOM), the Authority for Food and Economic Safety (ASAE) and the Directorate-General for Consumer Affairs, to "take the necessary measures to prevent this practice and to protect the economic interests of consumers."
The law states that if a consumer decides not to proceed with the contract within 14 days after signing it, he may be charged a "proportionate amount based on the total contract price," i.e. the subscription price divided by the number of days that the customer enjoyed the service.
When DECO discovered that companies were planning also to charge an installation fee beyond the amount laid down in law, it raised the situation with the authorities as it considers such practices illegal and a "clear restriction of a fundamental right of the consumer," and the consumer would agree.