Millions of zlotys will fly away from Allegro. The court decided

ByValeska
Balon reklamujący Allegro

The Court of Competition and Consumer Protection upheld the decision of the Office of Competition and Consumer Protection imposing a fine of PLN 3.97 million on Allegro.

The penalty was imposed for the use of prohibited contractual provisions in the regulations. The Office of Competition and Consumer Protection imposed a sanction in December 2022, finding that the provisions used in the regulations of Allegro and Allegro Smart violated consumer rights.

Penalties for violating Allegro and Smart regulations

The decision of the Office of Competition and Consumer Protection divided the penalty into two elements:

  • PLN 1.22 million for violations of Allegro regulations,

  • PLN 2.75 million for violations of the Allegro Smart service regulations.

According to the Office of Competition and Consumer Protection, Allegro in its regulations provided for the possibility of unilateral changes to the terms of the contract, which is illegal. Such actions put consumers in a worse position, which led to inequality in the legal relations between the platform and its users.

Justification for the decision of the Office of Competition and Consumer Protection

According to the Office of Competition and Consumer Protection, Allegro abused its dominant market position. The provisions contained in the standard contracts introduced a disproportion of rights and obligations, which was unfavorable for consumers. The Office assessed that unilateral changes to the regulations were an action violating the basic principles of consumer rights protection.

The judgment of the Court of Competition and Consumer Protection and Allegro’s plans

SOKiK fully upheld the decision of the Office of Competition and Consumer Protection and dismissed Allegro’s appeal. However, the e-commerce platform does not agree with the judgment and announced further legal action. As indicated in Allegro’s announcement, the company will carefully analyze the justification for the judgment and consider the possibility of repealing it.

What’s next? Appeal and potential consequences

The judgment of the Court of Competition and Consumer Protection is not yet final. Allegro has the right to appeal to the Court of Appeal. The penalty will only become final in the event of:

  • Allegro’s failure to take further action,

  • Final conclusion of court proceedings.

Until then, as Allegro points out, the financial penalty remains unpaid.

Impacts on consumers and the e-commerce market

The decision of the Court of Competition and Consumer Protection is an important signal for the e-commerce industry in Poland. It reminds us of the need to comply with the principles of consumer protection and fair treatment of users. Allegro, as the market leader, has come under the microscope of regulatory authorities, which may affect further practices used by the platform and other entities operating on similar principles.

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