ArmenTel fined 500,000 for 'misleading' consumers

State Commission for Protection of Economic Competition of the Republic of Armenia imposed today a 500,000 dram fine on ArmenTel, one of Armenia's leading mobile phone operator. The Commission concluded that the company has misled its consumers.

According to SCPEC Chairperson Artak Shaboyan, ArmenTel delivers Hi-Line internet service which is misleadingly advertised. The add, particularly, mentions that the services can be enabled without any fee, while a lot of subscribers have turned to the Commission and complained, saying the modem is provided for free while for it to operate fully, they have to make some connections - something the consumers cannot do themselves.

According to Mr Shaboyan the subscribers, by making a free call on ArmenTel's service number 100, have been told that if they cannot make the connections themselves, then the company's specialists can do it for 3000 drams ($8.5 USD/363.7 rate).

"It's a pity that four months later the Commission was not able to differentiate between a 'connection' and 'settings'," ArmenTel's lawyer David Sandukhchyan said during the Commission's session today.

In his words, a 'connection' and 'settings' are different functions - something the Commission fails to realize. Further he mentioned that the subscribers have been able to make the settings by following the instructions or calling the company's service center and receiving oral instruction.

"I can understand that the Commission is inclined to fine [the company], but I will have to defend the company's interests," said he, adding that another citizen had complained about it.

According to him, that citizen had been biased in advance and had tried to mislead the operator by asking various questions in an attempt to have him use the word 'connection' instead of 'setting.'

During today's session the SCPEC instructed ArmenTel also to stop advertizing or disseminating services that might mislead the consumers.