Mobile phone providers' service fees - money back!

What Is the Service Fee and Why Is It Unlawful?

Many telecommunications providers charge a so-called service fee in addition to the monthly base charges. But what is behind this fee, and why can consumers reclaim amounts already paid? In this article, we explain why the service fee has been deemed unlawful and how you can get your money back.

The Significance of the Service Fee

The service fee is an additional charge that many telecommunications providers bill to their customers – regardless of the monthly base fee. For years, this fee was charged by providers such as Magenta and A1 and was not refunded even when contracts had already been terminated. However, numerous court rulings, including decisions by the Austrian Supreme Court (OGH), have made it clear: the service fee is unlawful.

Why Is the Service Fee Unlawful?

On October 18, 2022, the Austrian Supreme Court (OGH) issued two landmark rulings (4 Ob 62/22d and 4 Ob 59/22p). In these decisions, the charging of service fees was classified as objectively unjustified and therefore inadmissible. The reason is that the fee represents an additional fixed charge that provides no extra economic value to customers. This fee places consumers at a significant disadvantage and violates fundamental consumer protection provisions, in particular Articles 22 and 28 of the Consumer Rights Directive (CRD) as well as Section 879(3) of the Austrian Civil Code (ABGB).

Lack of Customer Consent

Providers would have been required to obtain the explicit consent of customers before charging the service fee. This could have been done, for example, through an opt-in procedure in which customers actively agree, such as by ticking a checkbox stating: “I expressly agree to the additional annual cost of €27.00.” Without obtaining this explicit consent, the fees charged are not lawful.

Right to a Refund – Even for Old Contracts

The OGH ruling has far-reaching consequences: consumers can reclaim all service fees paid since 2011, even if the respective contract has already been terminated. Providers are obliged to refund the amounts in full.

How to Get Your Money Back

1. Review your invoices: Determine how much you have paid in service fees since 2011.
2. Contact your provider: Request a refund in writing. Refer to the OGH rulings and the relevant legal basis.
3. Remain persistent: If you encounter resistance, you may contact consumer protection organizations or reach out to me to enforce your claim.

Conclusion

The service fee may have been common practice for a long time, but the courts have delivered a clear judgment: it is unlawful. Consumers have the right to reclaim their money. Take advantage of this opportunity to recover unjustified charges.

Mag. Benedikt Walch
office@ra-walch.at
+43 1 41 200 41