Indexia to be tried for ‘deceptive marketing practices’

An investigation by the DGCCRF revealed that the company made its customers believe that their subscriptions were terminated, when this was not the case.

The Indexia group will be tried by the Paris Criminal Court for “misleading business practices “After overcharging for insurance for telephones and computers, the Paris prosecutor’s office said on Saturday, confirming press information. Through several companies such as SFAM, the Indexia group markets, among other things, services to insure telephones and computers as well as subscriptions to obtain reductions after purchase (cashback). After receiving hundreds of customer reports, fraud enforcement launched an investigation.

This investigation, which lasted several months, revealedpractices consisting in misleading consumers wishing to stop direct debits, terminate their subscriptions and be reimbursed for the sums debited after termination of their contract, that their requests were taken into account, or even effective“, had explained at the beginning of April the general direction of competition, consumption and the repression of fraud (DGCCRF). The conclusions of the investigations had been transmitted to the Paris prosecutor’s office, which cited the leader of the Indexia group and seven legal persons to appear before the criminal court. They will be judged formisleading commercial practices and obstacle to control“Said the prosecution, without specifying the date of the trial.

A first administrative investigation had targeted the SFAM for the same suspicions in 2018 after reports from customers to the consumer association UFC-Que Choisir and the DGCCRF. A search had been carried out at the headquarters of the company, which had agreed in 2019 to pay a fine of 10 million euros. This fine, which turned out to have no significant impact on the group’s growth, did not, however, put an end to customer alerts for overbilling. Following similar complaints, the Belgian Financial Services and Markets Authority on March 2 banned the Belgian subsidiary of SFAM, “Switch», to market its insurance products on the territory.

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