Polish Consumer Watchdog Brings Charges Against Two Private Universities Over Student Contracts

Key Takeaways

• UOKiK Challenges Private Universities: Poland's consumer watchdog has brought proceedings against the University of Business and Applied Sciences "Varsovia" and the Higher School of Vocational Education (WSKZ), alleging practices that may have infringed the collective interests of consumers.
• Contract Terms Under Scrutiny: UOKiK is challenging Varsovia's student contract provisions relating to withdrawal fees, refund policies, and court jurisdiction, arguing they may unfairly favor the university over students.
• Online Enrollment Practices Questioned: The regulator alleges WSKZ's website did not clearly inform prospective students that clicking certain enrollment buttons created an obligation to pay, raising concerns about compliance with consumer protection rules for online contracts.
• Transparency Concerns Raised: UOKiK says WSKZ failed to clearly explain the division of responsibilities between itself and partner higher education institutions, leading to confusion over who delivered educational services and where in-person classes would be held.
• Significant Financial Penalties Possible: If the alleged violations are confirmed, each proceeding could result in fines of up to 10% of the institution's annual turnover.

Deep Dive

A student decides not to continue their studies and is told they owe the university a month's tuition to leave. Another clicks what appears to be nothing more than an "Apply" button and, according to Poland's consumer watchdog, has already entered into a paid contract before realizing it.

Those complaints, different in detail but similar in character, have drawn two private universities into the sights of Poland's Office of Competition and Consumer Protection (UOKiK). On Monday, the authority announced proceedings against the University of Business and Applied Sciences "Varsovia" in Warsaw, formerly Collegium Humanum, and the Higher School of Vocational Education (Wyższa Szkoła Kształcenia Zawodowego, or WSKZ) in Wrocław, alleging practices that may have infringed the collective interests of consumers.

The cases do not accuse the institutions of the same conduct. Varsovia faces scrutiny over the terms written into its student agreements, while WSKZ is under investigation for the way it presented information during online enrollment. Together, however, they reflect a broader position taken by the regulator that students at private universities are not only learners. They are consumers purchasing a service, and the protections afforded by consumer law apply just as they would in any other transaction.

"Enrollment in higher education at a non-public university is only possible after concluding an agreement and paying for the education. Students are then protected by consumer law," UOKiK President Tomasz Chróstny said in announcing the proceedings. He said the authority had concerns both with the contractual provisions used by the institutions and with the information presented to prospective students on their websites.

Neither proceeding represents a finding that the law has been broken. If UOKiK ultimately determines that the alleged practices violated consumer protection rules, each institution could face a fine of up to 10% of its annual turnover.

Contracts, Refunds and the Cost of Leaving

Much of the case against Varsovia turns on what happened after students decided they no longer wanted to stay. UOKiK is challenging a contractual provision requiring students who withdrew from their studies or transferred to another university during the academic year to pay an administrative fee equal to one month's tuition. The regulator argues that while the agreement imposed financial consequences on students who left, it contained no equivalent provision requiring the university to refund fees if it failed to fulfill its own obligations.

The complaints received by the authority illustrate why that distinction mattered. Students reported that classes were not conducted in accordance with the curriculum, grades were not entered regularly, and diploma examinations could not be taken. According to UOKiK, those complaints came from consumers who had chosen to withdraw because they were dissatisfied with the quality of education they received.

The authority is also challenging provisions stating that enrollment fees, recruitment fees and student identification card fees would never be refunded, even where an applicant was not admitted or a program never commenced. Another clause made refunds dependent on whether an applicant withdrew before an individual admissions decision had been issued and submitted a request. In UOKiK's view, where the university has not yet incurred actual costs, such as producing a student identification card, those fees should be returned automatically.

The regulator has also objected to a clause requiring disputes to be heard exclusively by courts in Warsaw, arguing that Polish law allows consumers to bring claims before courts with jurisdiction over their own place of residence. For students living outside the capital, UOKiK says, the contractual provision places them at a disadvantage.

A Click That Carries a Price

The proceedings against WSKZ focus on something far more ordinary than a tuition dispute: the language on a website button. The university operates several education portals, including studia-online.pl, wskz.pl, studia-pedagogiczne.pl and studia-wroclaw.pl, through which prospective students can enroll in postgraduate, bachelor's, engineering and master's degree programs. According to UOKiK, consumers reported that clicking buttons labeled "Create an Account/Apply" or "Create an Account/Start Studies" resulted in the conclusion of paid agreements.

The regulator argues that those labels did not clearly inform consumers they were assuming a payment obligation. Someone using the websites, UOKiK said, could reasonably have expected that obligation to arise later, after creating an account or completing an application. Under Polish law, where placing an online order creates an obligation to pay, that obligation must be communicated explicitly on the button itself.

The authority has also questioned how WSKZ explained its role when facilitating enrollment in programs delivered by other higher education institutions. According to UOKiK, consumers were not clearly informed which institution was responsible for providing the educational service and which responsibilities remained with WSKZ. That lack of clarity, the regulator says, became particularly significant for students who believed in-person classes would take place in Wrocław, only to discover after concluding their agreements that the classroom component of the program would instead be delivered by another higher education institution in Starogard Gdański.

UOKiK has further challenged the school's treatment of the statutory withdrawal period. According to the authority, WSKZ regarded acceptance of its general terms and conditions as consent for educational services to begin before the withdrawal period expired. The regulator argues that Polish consumer law requires separate and explicit consent through an additional declaration acknowledging that, if the consumer later withdraws from the agreement, payment will still be due for services already provided.

The two proceedings address different conduct, but they share a common premise. Private universities may see themselves first as educational institutions, yet when they sell education through contracts and online platforms, UOKiK's position is that they are also businesses dealing with consumers. That now sits at the heart of both cases.

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