Latvian consumer watchdog says "Tiesiskums.lv" misled public on OIK refunds

A Latvian consumer protection agency has determined that the association "Tiesiskums.lv" misled individuals who sought to reclaim mandatory procurement component (OIK) payments included in their electricity bills. The association, established a year ago, had invited people to apply for refunds, suggesting that the European Commission had declared the OIK scheme illegal and that the state would negotiate reimbursements.

Residents who hoped to recover their money signed contracts with the association, providing their personal data. "Tiesiskums.lv" engaged in extensive advertising campaigns last summer, urging people to join a collective claim against the state to recover OIK payments made over many years. The association's legal representation included prominent lawyers, who argued that the European Commission had deemed the OIK support scheme unlawful.

However, other legal experts countered that no Latvian court had ruled the OIK system illegal. While the European Commission did identify a procedural violation regarding the need to coordinate the law with the commission, it ultimately found the scheme compatible with EU state aid requirements. PTAC's investigation this month revealed that the association selectively presented information from a specific European Commission decision, omitting its main conclusions.

Ieva Baldiņa, director of PTAC's Consumer Rights Supervision Department, stated that the assignment agreements between the association and individuals fall under consumer protection regulations. She noted that the association did not provide full information about the 2017 European Commission decision, which concluded the instrument was compatible with the internal market. "This would be considered misleading commercial practice," she said. Because the application period for individuals has closed and the assessment of the OIK payments' validity is outside PTAC's jurisdiction, the administrative case concluded without a penalty. PTAC has urged "Tiesiskums.lv" to ensure fair commercial practices going forward.

The association, however, rejects PTAC's criticism. It argues that the agency's reference to the European Commission's finding of compatibility with the EU internal market does not preclude an assessment of consequences arising from the period when support was implemented in violation of EU law.

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Because the decision concluded that this instrument is compatible with the internal market. This would be considered misleading commercial practice.