Le groupe Indexia commercialise, entre autres, des services pour assurer des téléphones et des ordinateurs ainsi que des abonnements pour obtenir des réductions après achat (cashback).

Insurance broker Indexia will be prosecuted for ‘misleading business practices’

After several months of investigation to suppress fraud and seize justice, there will be a trial. The Paris Public Prosecutor’s Office said the Indixia Group will be tried by the Paris Criminal Court on charges of “misleading business practices and an obstacle to control” after an increase in insurance fees for phones and computers, without specifying a trial date. The leader of the Indixia Group and seven legal persons were summoned to appear before the Assize Court.

Through several companies such as SFAM, Indexia Group, among others, markets phone and computer insurance services as well as subscriptions for discounts after purchase (cashback). After receiving hundreds of customer reports, Anti-fraud has launched an investigation.

The first fine of 10 million

This investigation revealed “practices of misconception by consumers wishing to stop direct debit, terminate their subscriptions, recover withholdings after termination of their contract, and that their requests were considered, or even effective,” it explained at the outset. From April, Directorate General of Competition, Consumer Affairs and Fraud Prevention (DGCCRF).

A first management investigation targeted SFAM – the group’s previous name – for the same suspicions in 2018 following reports from customers to the consumer association UFC-Que Choisir and DGCCRF. A search was conducted at the company’s headquarters, which had agreed in 2019 to pay a fine of 10 million euros. This fine, which turned out to have no significant impact on the group’s growth, did not put an end to customer alerts about over-billing.

Insurance solutions that are regularly highlighted

Convergence locks – also known as warranty extensions – are regularly called into question, especially for smartphones. In 2021, the association notified 60 million consumers after SFR customers found themselves affiliated with Chubb’s insurance without knowing it.

“We regularly deal with cases where the insured dispute wishes to join an insurance contract, at the point of sale, in addition to purchasing a good or service,” the insurance broker alerted last year, Arnaud Schneuis. He then advocated extending the withdrawal period from 14 days to one month and better training for sellers.

with AFP

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