OFT takes action over misleading European health insurance websites

[Legal Beagles]

The OFT has taken action against four online traders who deceptively sold consumers European Health Insurance Cards.

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5. Further information about EHICs can be found on the NHS Choices website.

[Amethyst]

Re: OFT takes action over misleading European health insurance websites

lol they'll try anything, the scammers.


Rest of article


The cards can be obtained free of charge from the official NHS website but some online traders were charging consumers, typically around £10 per application, and did not make it clear that they were not the official NHS site.
As a result of the OFT's investigations, three online traders have signed formal undertakings not to engage in deceptive selling practices. The websites are:

• www.ehic.org
• http://www.thejwsgroup.com/ehicservice
• http://www.ehic.uk.com.

A fourth website (http://www.ehiconline.com) has been suspended by its domain name registrar following concerns expressed by the OFT, and a fifth (http://www.e111-online.com) has voluntarily ceased trading.
The OFT investigation was launched in March 2010, in consultation with the Department of Health, and with support from Bolton Trading Standards, following complaints to Consumer Direct and the Department of Health.
The websites supposedly offered a 'review and forward' service for the applications, for which a fee was charged. But many consumers believed they were paying for an EHIC via the official site, and were unaware that EHICs are available free of charge from the NHS. Certain sites had purchased sponsored search engine links and therefore featured prominently when consumers searched for 'EHIC'.
The OFT formed the view that the online traders had breached the Consumer Protection from Unfair Trading Regulations 2008 and, in certain cases, the Electronic Commerce (EC Directive) Regulations 2002. The websites were found to be misleading in their presentation as they mimicked the EHIC brand, used an official sounding domain name and omitted important information by failing to clearly disclose that they were not the official provider of EHICs.
The OFT will now actively monitor the traders' activities and if the undertakings are breached it can take court action, including applying for an enforcement order under the Enterprise Act 2002.
Heather Clayton, Senior Director of the OFT's Consumer Group, said:
'While it is not unlawful to charge money for a reviewing and forwarding service, traders must be clear about the product or service they are offering, and not trick consumers into parting with money for services they don't want.
'People seeking to obtain government funded services such as an EHIC should check carefully that they are using an official government website.'
NOTES
1. The OFT has taken this action under Part 8 of the Enterprise Act 2002, Regulations 3, 5 and 6 of the Consumer Protection from Unfair Trading Regulations 2008 and Regulation 6 of the Electronic Commerce (EC Directive) Regulations 2002.
2. The following companies and traders provided formal undertakings to the OFT:

• Portcreek Ltd (www.ehic.org ), in relation to the Consumer Protection from Unfair Trading Regulations 2008
• Dan Joseph-Walker (http://www.thejwsgroup.com/ehicservice), in relation to the Consumer Protection from Unfair Trading Regulations 2008 and the Electronic Commerce (EC Directive) Regulations 2002
• IMAP (UK) Ltd (http://www.ehic.uk.com), in relation to the Consumer Protection from Unfair Trading Regulations 2008.

3. The following website was suspended by its domain name registrar following concerns expressed by the OFT in respect of the website's compliance with the Consumer Protection from Unfair Trading Regulations 2008 and the Electronic Commerce (EC Directive) Regulations 2002:

• http://www.ehiconline.org

4. The following website ceased trading voluntarily after the OFT made contact:

• http://www.e111-online.com

5. Further information about EHICs can be found on the NHS Choices website.

[Amethyst]

Re: OFT takes action over misleading European health insurance websites

Small update.

Investigations into the deceptive online selling of EHIC cards

Complainant: OFT own-initiative investigations
Investigations of:

1. Portcreek Ltd (www.ehic.org )
2. Dan Joseph Walker (http://www.thejwsgroup.com/ehicservice)
3. IMAP (UK) Ltd (http://www.ehic.uk.com)
4. http://www.e111-online.com
5. http://www.ehiconline.org

Cases opened: 26 March 2010
Cases closed: 10 August 2010
Issue: Misleading websites: applications for European Health Insurance Cards (EHICs)
Relevant instrument(s): Enterprise Act 2002, Consumer Protection from Unfair Trading Regulations 2008, Electronic Commerce (EC Directive) Regulations 2002
These five investigations were opened by the OFT on its own initiative following complaints made to Consumer Direct and subsequent consultation with the Department of Health. The complaints were about online applications for EHICs, which provide UK residents with access to state-provided healthcare in European Economic Area countries for a reduced rate or for free. The five websites in question supposedly offered a 'review and forward' service for the applications, for which a fee was charged. Consumers complained that they had believed websites of this type were the official websites for applying for EHICs, and they could have applied via the official site for free.
The OFT was assisted by the Department of Health and by Bolton Trading Standards Service.
1. Portcreek Ltd (www.ehic.org )
2. Dan Joseph Walker (http://www.thejwsgroup.com/ehicservice)
3. IMAP (UK) Ltd (http://www.ehic.uk.com)
After reviewing the complaints and information provided by the Department of Health and the operators of these three websites, the OFT formed the view that they were operating in breach of the CPRs. In particular, their commercial practices:

• constituted misleading actions in that their overall presentation deceived or was likely to deceive the average consumer in relation to the main characteristics of the product, the need for the service, the nature, attributes and rights of the trader, and the consumer's rights, contrary to Regulation 5 of the CPRs. For example, consumers were deceived or were likely to be deceived in relation to the service that was actually being provided and the fact that the website in question was not the official NHS Business Service Authority website, where the EHIC could be obtained free of charge, and
• constituted misleading omissions in that they hid material information, namely that each website was not the official website for EHIC applications, or provided that information in a manner that was unclear, unintelligible, ambiguous or untimely, contrary to Regulation 6 of the CPRs.

The OFT also formed the view, in relation to the website http://www.thejwsgroup.com/ehicservice, that this website was operating in breach of the Electronic Commerce (EC Directive) Regulations 2002, due to its failure to include information (for example, the name and geographic address of the trader in question) that would enable consumers to contact the trader rapidly and in a direct and effective manner.
As required in this case under the Enterprise Act 2002, the OFT engaged in consultation with Portcreek Ltd, Dan Joseph-Walker and IMAP (UK) Ltd to ensure that the identified infringements are not continued or repeated. Following this consultation, all three signed undertakings to comply with the law.
The undertakings require a number of changes to be made to the websites so that it is clear that they are not the official websites for making applications for EHICs. As certain sites had purchased sponsored search engine links and therefore featured prominently when consumers entered 'EHIC' into a search engine, the undertakings also prohibit the traders from including general information about EHICs in these links without also including the fact that it is not the official website.
4. http://www.e111-online.com
The OFT wrote to the operator of a fourth website, http://www.e111-online.com, to ask for more information about this website. In response, the operator of the website voluntarily shut down this site.
5. http://www.ehiconline.org
A fifth website, http://www.ehiconline.org, was hosted in the USA with a registrant apparently located in Spain. This website's domain name was suspended by the website's domain name registrar at the request of the OFT as a result of concerns expressed by the OFT in relation to the website's compliance with the Consumer Protection from Unfair Trading Regulations 2008 (the 'CPRs') and also the Electronic Commerce (EC Directive) Regulations 2002 (for example, failure to display the name and geographic address of the trader).
Having secured these results, the OFT has now closed these investigations.



The OFT will continue to monitor the traders who have given undertakings to ensure that the undertakings are not breached. If the undertakings are breached, the OFT may take further action in court, including applying for an enforcement order under the Enterprise Act 2002.