Consumers Authority taking Melita to court over alleged unfair practices
The case follows a price hike in September when broadband speeds were increased
The Competition and Consumer Affairs Authority is suing Melita for alleged unfair commercial practices after the communications company in August told customers that it was raising prices by up to €3.50 from the following month, as broadband speeds were increased.
Consumers were given the choice of terminating their contracts at no cost or signing up to a new plan.
The MCCA's director-general announced the legal action through a notice on the authority's website, saying it followed an investigation. "The alleged infringements relate to unfair commercial practices, including misleading actions and misleading omissions with regard to the notices that Melita Limited C 12715 issued on the 1st August, 2024 to its subscribers and its subsequent actions," he said.
Melita is denying the authority's claims.
The changes had drawn complaints from several consumers, particularly as Melita did not offer customers the option of remaining on their existing price plans.
One customer had told Times of Malta at the time that although the €3.50 per month increase might not seem like much, “it adds up,” stressing he had not been given a choice about the change.
"The point is this is being forced on me. Suddenly my contract is changing... there isn’t the option to keep my existing price and speed,” he said, adding that he had not been unhappy with the speed of his internet connection. When the customer contacted the company, he was told by a customer service representative that Melita "reserves the right to make amendments to our packages and services, including prices.”
Melita later explained to the media that customers on connections of 150, 300 and 500 Mbps were seeing upgraded speeds of either 500 or 750 Mpbs, with prices rising by €1.50 to €3.50.
“Customers who do not wish to accept the new packages are reminded that they have the option to stop without penalties within 30 days of being notified.”
The Malta Communications Authority had said that “changes in contract terms, such as the price increases being implemented by Melita, do not require MCA’s approval and cannot be restricted by the MCA” as long as there was a 30-day notice.