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” published. The German Federation 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. As they explain 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 a reduction in contract terms to six months. But what impact could such strict regulation have? Current contracts often come with smartphones. Many consumers take advantage of such offers to get their dream phone at a lower price. However, this could end once the law comes into force, as providers would most likely increase the cost of such a device – or so 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 addressed. (Photo by nuoil830 / Bigstockphoto)
