By Ben Kerrigan-
The Competition Market Authority (CMA) is taking a leading anti-virus software firm, Norton, to court after it refused to provide certain information for an investigation into auto-renewing contracts.
During its investigation into the anti-virus software sector, the Competition and Markets Authority (CMA) has identified a number of important concerns that Norton’s terms and practices for automatically renewing contracts, could result in customers paying for services they no longer want or need.
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Norton ignored requests from the CMA, including research undertaken by the software firm on how customers responded to website information on auto-renewal and pricing.
The CMA says it considers Norton’s non-compliance to be in breach of its legal obligations . It is now using its powers to enforce the request for information through the courts. This is the first time the CMA has needed to take this step in a consumer protection case.
Andrea Coscelli, CMA Chief Executive, said: ‘It is completely unacceptable that a leading anti-virus software firm has refused to supply all the information we asked for, which is why we’re taking the firm to court.
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Our unprecedented decision in this case reflects the serious impact of Norton’s refusal, which is delaying a CMA investigation intended to protect UK consumers.
A rollover or auto-renewing contract automatically renews at the end of a set time period onto a further set period. It means the customer – whose payment details are kept on file – is charged unless the customer actively takes steps to cancel the contract.
The CMA is investigating whether Norton provides sufficiently clear or prominent information that a contract will automatically renew, both before the customer enters into the contract, and then before it automatically renews.
”It also provides the customer with adequate ways to cancel the automatic renewal. It uses price promotions that present a regular introductory price as a sale price, and uses unfair contract terms to increase the prices paid by customers when contracts automatically renew
Consumer Rights Act
Under the Consumer Rights Act 2015, the CMA has the power to send a written notice to any person requiring them to provide information to enable the CMA to exercise or to consider whether to exercise its powers to enforce consumer protection legislation
If a person does not provide the required information, then the CMA can apply for a court order requiring them to comply.
The CMA opened its investigation into the anti-virus software sector in November 2018. The key piece of consumer protection legislation relevant to the CMA’s enforcement action into the anti-virus software sector is the Enterprise Act 2002.
Whilst the CMA can raise concerns around a breach of consumer protection law, ultimately, only a court can rule that a particular practice infringes the law.
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