The discussion about shortening contract terms in the mobile communications sector is already several months old. The proposal to reduce the term from 24 to 12 months is widely viewed positively. But the Federal Association of Consumer Organizations (vzbv) does not think this is enough.
At the end of January, the Federal Ministry of Justice and Consumer Protection presented a draft law entitled “Draft of a law for fair consumer contracts“. The Federal Association of Consumer Organisations (vzbv) has now commented on this. The proposed changes are generally welcomed, but the vzbv is of the opinion that this would not be sufficient. It explains in the opinion:
In Germany, contracts for telecommunications services, such as landline or mobile phone connections, usually run for 24 months. In the opinion of the vzbv, this long contract period without prior regular termination represents an unreasonable disadvantage for consumers and cannot be justified in view of the flexibility, fast pace and innovative capacity of the market required today. In the case of telecommunications services in particular, action is therefore required to shorten the notice period and the term. The focus here is on the flexible option of terminating the contract after one month without additional costs. In line with the Belgian and Danish model, the vzbv therefore advocates a maximum contract period of six months - in contrast to the draft bill.
Smartphones in combination with contracts could become more expensive
Accordingly, the vzbv is calling for the contract period to be shortened to six months. But what effects could such strict regulation have? Current contracts are often combined with smartphones. Many consumers use such offers to get the mobile phone they want at a cheaper price. But that could be over when the law comes into force, as providers would most likely increase the cost of such a device - that is what many fear. If you would like to read the entire statement in full, you can find the PDF linked below. The topic of "unauthorized telephone advertising" is also covered. (Photo by nuoil830 / Bigstockphoto)