Heavy fine for the insurer SFAM

The directorate general of competition and consumer affairs (DGCCRF) has imposed sanctions on the insurer SFAM for its deceptive marketing practices.

According to the results of the investigation conducted by the DGCCRF, SFAM had customers buy insurance without their knowledge. More than a thousand complaints have been filed by buyers of mobile devices (tablets, phones,…). During the transaction, customers signed documents thinking they would receive a discount on the purchase price when in fact they were signing an insurance policy with SFAM.

A large part of the infringements took place in the shops of FNAC whose insurer is the 2nd shareholder.

SFAM is thus fined 10 million EUR (11.2 million USD) and will have to reimburse all customers who made a claim before 31 August 2019.

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