In France, 40% of senior residences in France are, for the most part, suspected of deception. This is the result of a survey carried out by the Directorate General for Competition, Consumer Affairs and Fraud Control (DGCCRF) which screened 256 residences. A few hundred establishments are therefore in violation, according to this report unveiled by the Sunday newspaper and which will be published on Monday.
Among the dozen abuses identified, one example comes up very frequently: deception on the services billed to the elderly. In concrete terms, residences did not properly inform consumers about the services offered. The investigators thus noted, on websites or communication media, that certain structures presented themselves, wrongly, as medical establishments. In addition, residences have lied about the quality of service by mentioning, for example, the 24-hour presence of a security guard, a balneotherapy area or a gym. Non-existent services which were billed by the management of the establishment, according to the DGCCRF.
Another example is unlawful or unfair terms in contracts. Thus, fees are charged if the elderly use a universal service employment check which is used, among other things, to declare and pay for their possible home help. Finally, there is the promise of a tax credit for resident tenants on the provision of personal services. Problem: The features of the services offered were not always specified by management. The residents therefore did not know whether the services to which they subscribed were individual or collective. Consequence: the prices claimed, which included the tax deduction promised by the establishment, were likely to be inflated by a supplement, denounces the DGCCRF. “The prices displayed can influence and bias the choice of residential if there is deception on the services”, underlines the Repression of Fraud.
The good news: it seems that following the audits of the tax authorities, “a large majority” of the establishments concerned have quickly brought themselves into compliance. As a reminder, a company recognized for deception against an individual risks two years in prison and a fine of 300,000 euros, according to the Consumer Code (article L132-2).
