Customer service law approved: Changes for the better explained

A GROUND-BREAKING new customer service law has finally been approved by Spain's Council of Ministers after being shelved for nearly two years.

The right to speak to a human rather than a machine, a limit of three minutes for being kept on hold on the telephone, and a requirement for complaints to be resolved within two weeks are included in the new Law of Customer Assistance Services, which the government began working on in November 2021.

Reason for two-year hold-up

Details were released early the following year, but progress on the legislation reform ground to a halt with socialist president Pedro Sánchez's decision to hold a snap general election in July 2023 in the hope of reinforcing the left-wing leader's mandate following a landslide dive to the right in the earlier regional and local council elections.

Sánchez's gamble paid off, and the socialists (PSOE) will continue in national government until at least mid-2027, along with their left-wing coalition partners Sumar, a regroup of the earlier independent party Unidas Podemos.

It was Unidas Podemos' Alberto Garzón – formerly of United Left – who spearheaded the changes in customer service legislation when he was minister for consumer affairs, and his draft law earned a near-unanimous 'yes' in its first Parliamentary scrutiny: A total of 289 in favour and 54 abstentions, but no votes against.

Coming into effect 'imminently'

Despite the long delay, the final signing-off process and bringing into effect of Garzón's legislation is expected to be straightforward, especially as the new minister for social rights, consumer affairs and Agenda 2030, Pablo Bustinduy, has given the text the nod without requesting any amendments.

Doing so was a strategy to ensure the law would come into force as quickly as possible, with any issues or necessary improvements left for later debate and voting, since Bustinduy considered it imperative to 'end, or at least reduce' the 'general levels of dissatisfaction' among consumers with the service they receive.

“Poor customer service is the main cause of lack of satisfaction among 20% of consumers,” Bustinduy's department reveals following extensive research.

Now the legislation has cleared the final hurdle, it should come into effect within a matter of weeks.

Time limits, human intervention and 'personalised service'

At present, complaints have to be settled within one month of being presented, but the new law reduces this to 15 days.

Callers may not be left on hold waiting to speak to an operator for more than three minutes, and they must be given the option to talk to a human if they wish. Companies will no longer be able to set up automated voice messages giving standard information upon choosing from a list of options.

Crucially, companies are required to provide 'personalised service', catering for 'multiple variables', the law text explains – such as age, diversity, disability, and 'administrative situation of the user'.

Examples include not being allowed to limit contact to online channels or mobile phone Apps, which could exclude the very elderly, those who are not technologically literate, or who cannot afford to replace their smartphones with a newer model every time an App upgrades and becomes incompatible with their existing operating system.

It also means firms are not permitted to limit customer contact to phone calls only, as this would make it harder or even impossible for consumers who are deaf, hard of hearing, have speech difficulties or significant language barriers or, perhaps, those on the autism spectrum.

Companies, in accordance with the new legislation, would not, for example, be able to insist on customers attending their offices in person as a condition of using their services, since this would prove a barrier for those with disabilities, chronic health conditions, or with no transport.

Round-the-clock service for 'basic utilities'

Where the company in question is a provider of what the new law terms 'basic utilities' – a description that now includes internet as well as phone, electricity, gas and water, and transport – the supplier is required to inform customers, proactively, of any outage, rather than wait for consumers to contact them and report it.

The provider must also advise customers of the reason for the supply cut, and must guarantee that a solution will be found within two hours.

Where a dispute is currently open, utility firms may not cut off the supply until this is resolved.

Opening times guaranteed

For these 'basic services', customers must be able to contact the company – and speak to a human operator – seven days a week, 24 hours a day, and every day of the year, including weekends and public holidays.

Customer service departments are required to be open for contact at least during the company's normal operating hours. For example, if a firm is open to the public between 09.00 and 18.00, Monday to Friday, it is not permitted to restrict customer service phone lines or internet response to mornings only.

No sales pitch during customer service contact 

Cold calling is not permitted for non-customers or where a customer has opted out – the 'Robinson List' also operates in Spain, and anyone who wishes has always been able to add their phone number to it, making it against the law for companies to contact them to try to sell them goods and services.

The original draft law, voted through successfully in March 2022, intended to make it illegal for firms to attempt to cross-sell or up-sell to customers calling with a complaint. This has now gone a step further: Companies are now forbidden to use sales pitch when anyone calls for purely customer service-related issues.

Separating the customer care department from the sales department is a key feature of the new legislation, although cross-selling and up-selling may be permitted where the offer in question provides a direct solution to the consumer's problem. The caller must be fully advised, however, where this 'solution' involves an increased price, or a reduction in service level in return for a lower price, so that they are at liberty to make an informed decision at leisure.

What happens if companies do not comply with the law?

In a bid to ensure firms do not 'try it on' or refuse to change their practices in line with the new legislation, those who fail to meet the required standards can face fines of between €150 and €100,000.

An evaluation or 'rating' system, allowing customers to give feedback on the service received, must be in place and available to be monitored at least annually by consumer authorities.

Which companies does the law apply to?

Effectively, the new law mainly only offers protection for customers of 'basic utilities and services' since, unfortunately, the vast majority of companies in Spain providing anything other than these is exempt.

The new legislation is binding upon all large corporations in any sector – defined as those with at least 250 employees – independently of how 'essential' or otherwise their goods and services are.

But over 75% of firms in Spain are small, usually family-run, or medium-sized businesses, with fewer than 50 or, in most cases, fewer than 10 members of staff, meaning that unless they are involved in utilities – which is unlikely – the new law does not apply to them.

And it only covers private customers, not 'commercial' clients – even as an individual, if you use a service in your capacity as a self-employed worker, you are not protected by consumer care legislation. In this situation, your only recourse in the event of a complaint not handled to your satisfaction is via the courts, which means fees running into hundreds of euros.

The definition of 'basic services' in the new consumer law is, however, fairly wide-ranging, and applies to any company of any size, public-sector or private-sector based, which provides them.

Water, electricity, gas or any other form of household energy; transport services including buses, coaches, trains, airlines, ferries, taxis, and similar; postal services, including couriers; telecommunications including internet and electronic communication services; audio-visual services involving one-off or subscription payments, such as television or streaming services; and financial services including banking and insurance, are covered.