Finland’s competition authority reports over 70 complaints against Loiste Europe for misleading sales tactics

Monday 28th October 2024 on 06:43 in Finland Finland

health

Miika Vihervuori found himself in debt collection due to a toothbrush order he attempted to cancel multiple times by phone. Over a six-month period, he faced repeated claims from the customer service that the subscription was binding, despite his efforts to end it. His experience is part of a broader issue, with Finland’s Competition and Consumer Authority reporting over 70 complaints this year regarding misleading sales tactics by an electric toothbrush company, Loiste Europe.

In its three years of operation, Loiste Europe has taken over 1,300 customers to court over unpaid bills, with many individuals unaware they had committed to lengthy subscriptions beyond just the toothbrush order. Many complaints involve phone calls that pitch a discount with misleading pricing, often resulting in customers unknowingly agreeing to nearly €190 commitments that included additional services for replacement brush heads.

Low-cost “robot” phone calls promoting the brushes have raised concerns as well, with many individuals reporting they’ve received unsolicited calls. The legality of these automated sales calls is under investigation by the data protection authority, especially since many recipients do not remember consenting to such marketing.

Loiste Europe, primarily owned by two Finns with ties to a health supplement company, denies any wrongdoing. They claim their sales process is thorough and misunderstandings can occur, but insist customers can cancel subscriptions at any time as per the agreement. In January 2024, the Consumer Ombudsman ruled against the company for inadequate compliance with new consumer protection laws regarding written confirmations after telemarketing calls.

Source 
(via yle.fi)