Telecommunications Provider: 300,000 Euro Fine for Audacious Practices

The State Commissioner for Data Protection and Freedom of Information in North Rhine-Westphalia (LDI NRW), Bettina Gayk, has imposed fines totaling 300,000 Euros on a telecommunications company from NRW. The reason is massive violations of data protection rights and the company's persistent refusal to provide transparency regarding its own data processing. "Rarely have I encountered so little insight from those responsible," explained Gayk. Furthermore, the company was "only very limitedly cooperative" with the authority "despite clear legal provisions for cooperation and many reminders."

Since 2022, numerous consumers had contacted the authority. They received personalized advertising letters for an internet and telephone connection, even though they had never had any prior contact with the company. In addition to the address and landline number, the letters also contained a pre-filled order for a change of provider, where only the IBAN needed to be added. It was often unclear where the company obtained the data from. According to Gayk, the company "regularly remained intransparent."

Imitated Designs and Names

"Due to the design of the letters and the similarity in name to another, very well-known telecommunications provider, many consumers were also unaware that it was not an offer for a different tariff with their current provider – but an offer to switch providers," states the LDI. If the affected individuals revoked the contract after noticing the switch, the company often demanded a lump sum for damages.

Fines of 100,000 and 200,000 Euros were imposed, among other reasons, for disregarding the rights of data subjects and violating information obligations. "Neither the data subjects' requests for information about the processing of their data were answered, nor their wish for deletion or objections to data processing," Gayk explains. "Yet, in most cases, the letters or emails were demonstrably received by the company, contrary to its statement." Information, such as who is responsible for data collection, was also missing.

The procedure described strongly resembles the practices of the company 1N Telecom from Düsseldorf, against which consumer protection agencies have been taking action for years. Here too, customers are being tricked into switching providers through misleading mail and targeted name similarity. The Federal Court of Justice (BGH) had already declared the company's general terms and conditions invalid. Nevertheless, according to consumer advocates, 1N Telecom continues to try to collect money from affected individuals through collection agencies like TPI Investment, often with "settlement offers" under threat of further legal action. It was not officially confirmed whether the company fined by the LDI NRW is 1N Telecom.

(mack)