Consumer advice centers: Model declaratory action against primaholding GmbH due to inadmissible price increases and insufficient information.

Consumer advice centers: Model declaratory action against primaholding GmbH due to inadmissible price increases and insufficient information.

According to a report by www.chip.de, primaholding GmbH is known to consumer advice centers because of complaints in the areas of energy and water. Consumer advocates recorded 17,000 complaints against the company in 2022 alone, accounting for almost a third of all complaints in this area. The reasons for the complaints range from foisted contracts to unacceptable price increases and excessive discounts. The Federal Association of Consumer Organizations (vzbv) is currently bringing two model declaratory actions against primastrom and voxenergie due to inadmissible price increases.

A third class action lawsuit could now be added because, according to vzbv, the company allegedly did not provide proper information about the legally required right of withdrawal in contracts. The consequences for consumers are significant: contracts can be revoked if the contract was concluded no more than 12 months and 14 days ago. In addition, advance payments that have already been paid can be requested back in full. For example, a two-person household with an annual consumption of 2,500 kWh can receive a refund of more than 1,200 euros after twelve months of delivery.

These developments can have a significant impact on the market and consumers. Consumers who are customers of nowenergy, primastrom or voxenergie and have concluded a contract during the specified period should visit the consumer advice center website and have their case examined interactively. It is likely that these lawsuits and the possibility of canceling contracts could influence consumer trust in energy providers and possibly lead to increased consumer switching behavior. Affected companies may face financial strain as a result of these lawsuits and possible recoveries and may need to rethink how they approach contracting and customer communications.