End of Unwanted Calls? New Regulation Targets Telemarketing from Utility Companies
The Ministry for Ecological Transition and the Demographic Challenge, under the leadership of Teresa Ribera, is making strides to eliminate the frustration caused by unsolicited calls from electricity and gas companies. In a recent proposal for a royal decree that is currently available for public consultation, the Ministry has put forth a ban on telemarketing practices by utility providers.
The proposed regulations aim to enhance consumer protection by preventing companies from engaging in unsolicited advertising or contract offers over the phone. Specifically, Article 13, point z of the proposal outlines that marketers may no longer conduct such practices unless a consumer explicitly requests them or initiates the call. This change comes in direct response to numerous complaints received by the National Commission of Markets and Competition (CNMC) regarding misleading phone calls that consumers had not consented to, often leading to contracts that lacked clarity or proper informed consent.
Furthermore, should a user choose to call a company themselves to inquire about services, the marketer is now required to record the entire conversation. This includes cataloging all the information provided and precontractual details regarding the offer. The intent is to ensure transparency and protect consumers from signing up for services based on incomplete or misleading information.
The push for these changes is highlighted by statistical evidence revealing that a staggering 98.3% of consumers reported receiving unsolicited commercial calls a year after the General Telecommunications Law was enacted in June 2022. This law established consumers' rights not to receive unwanted promotional calls without prior consent. However, it didn't specifically ban telemarketing contracts for utilities, which has allowed gas and electricity marketers to persist with their unwelcome outreach.
The situation reflects an ongoing struggle between consumer rights and the aggressive marketing tactics employed by utility companies. As more consumers voice their frustrations and experiences with misleading telemarketing practices, government initiatives like these underscore the importance of consumer protection in an increasingly digital world. The hope is that this new regulation will significantly reduce the number of unsolicited calls and provide consumers with a more positive experience when dealing with utility services.
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