An investigation into a possible violation of EU rules was initiated following a complaint from a business client operating a beauty salon that “Treatwell LT” unjustifiably applied a commission fee for new users’ canceled or missed appointments, although the circumstances for applying such a fee were not clearly specified in the business cooperation terms.
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The institution found that “Treatwell LT” did not provide beauty salons and other business clients with information on the cases and exact circumstances under which the platform has the right to apply a commission fee for new users’ canceled appointments and when such a fee can be waived.
Although the platform may take measures to protect itself from business clients avoiding fees, the terms must clearly state the criteria on which “Treatwell LT” decides that a business client is abusing allegedly canceled user appointments as a pretext not to pay the commission fee.
Based on the collected information, the Competition Council concluded that “Treatwell LT” violated the EU regulation requirements aimed at increasing fairness and transparency in online intermediation services provided to business clients. The institution did not impose a fine for the violation but obliged the company to clearly and understandably provide information about the application of the commission fee in the terms for business clients within two months, specifically regarding new users canceling appointments.
“Many businesses use online platforms as the main channel to reach consumers, in this case – small beauty salons and individual beauty service providers. The latter often find themselves in a weaker bargaining position, with platforms unilaterally setting or changing cooperation terms. Therefore, it is crucial that the conditions applied to business clients are transparent, clear, and predictable, leaving no room for unexpected decisions by online platforms,” said Jolanta Ivanauskienė, Chairwoman of the Competition Council.
Experts from the Competition Council also checked whether other “Treatwell LT” business cooperation terms comply with the regulation requirements. It was found that, besides the already mentioned commission fee application, there was no information about the reasons for which the provision of online intermediation services to business clients could be fully or partially terminated, as well as the importance of rating parameters, description of data access, and more.
“Treatwell LT” voluntarily adjusted the mentioned terms before the end of the investigation, so the Competition Council terminated the investigation to this extent.
The decision can be appealed to the Regional Administrative Court within one month from the date of its delivery.
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