Government proposes fines for poor customer service

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Government proposes fines for poor customer service
Photo: Pär Bäckström/TT

Many people will probably recognise themselves in getting stuck in a long phone queue or in a conversation with a chatbot when they want to cancel a subscription or get help solving a problem.

There are already rules for companies that handle customer service. On the one hand, there are requirements for visibility, with contact information, and for promptness - that they must respond within a reasonable time. What is missing, however, is the possibility of sanctions.

"We will now tighten the requirements for companies' customer service," Erik Slottner said at a press conference.

Courts should be more able to impose fines on companies that do not meet the requirements for accessible customer service.

Large hidden number of shortcomings

If customer service does not become more efficient and customer-focused, there is a great risk that customers will be kept in contracts that they actually want to terminate, he believes.

According to Slottner, there is a large hidden number of shortcomings among companies, which makes it difficult to keep statistics in this area. It is possible to report defects in goods and services to the Swedish Consumer Agency and the Swedish National Board for Consumer Complaints, but not to report shortcomings in customer service itself, he explains.

Therefore, we currently do not have much knowledge about how big the problem is, apart from the inspection reports provided by the Swedish Consumer Agency.

The proposals in the legislative council's report are based on a study conducted by the Swedish Consumer Agency and apply to, among other things, retail trade, hotel and restaurant operations, construction and craft services, and personal services such as hairdressers and beauty salons.

It is a clear signal to Swedish companies to make sure this works, says Elin Nilsson (L).

Serious companies have nothing to worry about, she adds.

Fine determined by the company's finances

The Consumer Ombudsman is responsible for monitoring compliance with the rules and can take action against companies that do not comply with the rules and bring them to court. If the company does not comply with the order, it will be fined, i.e. required to make improvements. Ultimately, fines and injunctions are decided by the Patent and Market Court.

A typical amount that a company that has misbehaved should be able to receive is one to two million kronor. However, the amount is determined based on the company's size and financial circumstances, and should be of a magnitude that is deterrent.

The legislative amendment is proposed to enter into force on March 1, 2027.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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