Consumer complaints in Cyprus rise sharply
The Cyprus Consumers Association (CCA) this week reported a significant increase in consumer complaints during the first half of 2024, particularly in terms of passenger rights and organised travel.
Complaints related to organised travel saw a 75.58 per cent rise compared to the same period in 2023. The association stressed the need for support to address the “increasing consumer issues”.
Conversely, complaints related to unfair terms in consumer contracts, and telecommunications, decreased in the first half of 2024.
In a report detailing the main categories of complaints, both written and via telephone, submitted to the association from January 1 to June 30, 2024, the CCA underscored its serious consideration of consumer concerns and the ongoing increase in complaint numbers.
The association assured that, within its capabilities, it would “intensify its efforts to fully inform consumers about their rights and to press the relevant authorities for more rigorous market inspections and effective implementation of consumer protection laws”.
Additionally, the CCA said that there was “great success in concluding separate mediation agreements for the resolution of consumer disputes with 62 retail businesses”, which “decisively aided in resolving consumer complaints”.
The association also mentioned its collaboration with fifteen consumer organisations from EU member states and under the supervision of the European Consumer Organisation (BEUC) to participate on September 12, 2024, in a campaign against video game companies Activision Blizzard, Electronic Arts, Epic Games, Mojang Studios, Roblox Corporation, Supercell, and Ubisoft.
This campaign pertains to video games Diablo IV, Fortnite, EA Sports FC 24, Minecraft, Clash of Clans, Roblox, and Tom Clancy’s Rainbow Six Siege, regarding violations of European directives 2005/29/EC on unfair business-to-consumer commercial practices, 2011/83/EU on consumer rights, and 93/13/EEC on unfair contract terms.
The association said that all organisations involved in the campaign are in constant communication with the European Commission to formally submit the complaint.
Increase in complaints
The CCA detailed that the four categories of complaints with the highest increase compared to the same period last year are passenger rights and organised travel, with an increase of 75.58 per cent, followed by online scams and email frauds, with an increase of 51.56 per cent.
Moreover, complaints related to the high cost of living saw an increase of 41.46 per cent, while return policy complaints rose by 34.76 per cent.
Specifically, the passenger rights and organised travel category saw a sharp rise due to “continuous strikes by air traffic controllers in France and Germany, and extreme weather events during the summer that significantly impacted European flights”.
Complaints for this category in the first half of 2024 included flight cancellations to and from Larnaca and Paphos international airports, boarding delays, overbooked flights forcing passengers to travel on different dates, mishandling of luggage, overcharging passengers during check-in due to airline app malfunctions, and delayed compensation (beyond five months).
For organised travel, complaints focused on unilateral changes to the contract terms between the consumer and organiser, such as route changes, meal exclusions, and additional charges for excursions not included in the original agreement.
Regarding online scams and email frauds, complaints included phishing for personal data, fake competitions for gift vouchers from unknown store chains, scams promising free airline tickets, fraudulent holiday packages, unlicensed loan offers, online purchases where businesses deactivated consumer accounts preventing refunds or product receipt, and fake product deliveries.
In the high cost of living category, complaints concerned price increases for essential goods, fuel price hikes after subsidy removal, high electricity costs, difficulties in paying rent, loan repayment issues, energy poverty, difficulties in buying essential goods, and the need to expand the list of beneficiaries for the EAC special tariff to include more vulnerable consumer groups, such as low pensioners and certain patient categories.
For the return policy category, complaints mainly concerned product returns during sales periods. The association said that the existing legislation does not cover product return policies, leaving it up to each business to decide whether to refund, issue a credit note, or reject the request.
The CCA stressed the need for the Consumer Code of Conduct, which regulates issues not included in the main law, to be amended and become binding for businesses to resolve these disputes.
This need, the association continued, was also presented to the House Commerce Committee on November 14, 2023.
In the energy category, which covers various grant programmes, complaints focused on the government’s ‘Photovoltaics for All’ scheme, with issues like the 4.16 kWh per household limit being too small, especially for large families.
Complaints were also made about companies not providing the mandatory seven-year warranty under the scheme and requests from small and medium-sized business owners to be included in the subsidy scheme.
For distance selling and out-of-store purchases (right of withdrawal), complaints pertained to online purchases from platforms based in third countries, where EU consumer rights directives do not apply.
The CCA represents Cyprus in the European Consumer Organisation (BEUC) and was asked to present national consumer complaints data concerning online commerce and marketplace platforms Temu and Shein.
From January to February 2024, over 100 complaints were recorded against Temu by EU consumer organisations, with 70 relating to the violation of the right of withdrawal terms.
“This practice by Temu highlights the challenges associated with electronic sales from merchants outside the EU and the difficulty in enforcing product safety and consumer rights legislation,” the association explained.
Following this, the BEUC and 17 consumer organisations lodged a complaint against Temu on May 16, 2024, with the relevant national authorities and the European Commission, requesting intervention for the company’s compliance with EU law.
In the unfair commercial practices category, complaints involved misleading consumers regarding discounts, customer reward programmes, gift offers, and hotel bookings that did not match the advertised features.
Complaints in the food safety category included food poisoning, spoiled food, foreign objects in food, expired food sold at a discount without informing consumers, food not matching expected quality, incorrect or missing labelling, false country of origin claims, and conventional products sold as organic. For dietary supplements, complaints concerned claims or indications on labelling or advertising implying disease prevention, treatment, or cure.
In the non-display of prices and price discrepancy at checkout category, complaints related to the failure to display prices in shop windows or inside stores, or prices placed in non-visible areas, in violation of basic legislation.
Additionally, price discrepancies between shelf and checkout, with consumers paying more, and the omission of discount percentages on receipts during sales periods were also reported.
For product guarantees, this category continues to record the highest number of complaints, focusing on businesses’ refusal to comply with the relevant law regarding defective product repairs.
Complaints also included unjustified delays in repairing and returning defective products within 25 calendar days and charging consumers for repairs of products under the two-year warranty or technical report fees for repairs.
Decrease in complaints
On the other hand, the CCA reported a decrease in the categories of unfair terms in consumer contracts, and telecommunications, during the first half of 2024.
Finally, the final category, related to all other issues not covered by the aforementioned categories, included general complaints submitted by consumers.
These included poor service from government departments and agencies, incorrect water bill charges, violations of patient rights by public and private hospitals, medication shortages, delays in police depositions, communication difficulties with government departments, fines and cameras, and rejection of allowance applications, among others.