DE: New law for fair consumer contracts

Mar 11, 2022 Benn-Ibler Rechtsanwälte

The Fair Consumer Contracts Act aims to make it easier for consumers to opt out of contracts that are typically longer term, such as smartphones, streaming services, fitness studios or electricity and gas supply. Above all, new regulations were created regarding overly long contract extensions. The introduction of a termination button for internet contracts makes it much easier to terminate contracts. A large part of the law already came into force on October 1, 2021. However, the renewed termination rules will only take effect from March 1, 2022.

The most important innovations include:

• Automatic tacit contract renewal: The possibilities of automatic contract renewal are restricted. Often, contracts with a minimum term of two years are tacitly extended by another year if the consumer does not terminate in time. This often unintentionally long contract commitment will now be restricted. In the future, the consumer must be given the option to terminate the contract at any time after the expiry of the minimum contract term.
• Shortened notice period: The notice periods for contracts for the delivery of goods or services such as streaming services, magazine subscriptions or fitness studios will be significantly shortened. In future, it will be possible to terminate with a notice period of one month instead of three months before the end of the initial contract term.
• Cancellation button: A cancellation button for contracts concluded on the internet was also decided. The termination details must additionally be confirmed electronically in text form by a confirmation of receipt.
• Contract confirmation for contracts concluded on the phone: In the future, energy supply contracts concluded on the telephone require text form. Thus, written confirmation in the form of SMS, e-mail or letter is required.
• Prohibition of transfer/assignment exclusions: Disadvantageous assignment clauses that prohibit the assignment of monetary claims of the consumer are invalid. This then allows the consumer to assign any claims to a legal tech company for their enforcement.
• Obligation to document consent to telephone advertising: Companies are obliged to document the consent of a consumer to telephone advertising. This is intended to make it easier to punish unauthorised telephone advertising.

If a business violates the new protection requirements in the future, the consumer will have the right to terminate the contract at any time without notice.

BTag Drucksache 19/26915 (24.02.2021)