We've all been there. As your electricity contract nears its expiry date, you decide it's time to.
Ahead of the deadline, you log on to your account and search for a way to cancel your contract. It turns out, however, that the website is designed like a labyrinth and it's nearly impossible to find what you're looking for.
Once you do find your way to the right section, you're hit by increasingly desperate "Don't Leave!" promotions. Eventually, you just give up and decide it's easier to stay put for another year.
As it turns out, these kinds of tactics are fairly common practice for businesses in Germany. But the Federal Court of Justice (BHG) has issued a new ruling to try and stamp out tricks by service providers designed to keep customers locked in their contracts for longer.
What's the ruling about?
The case was originally brought by the national consumer rights group Verbraucherzentrale Bundesverband (VBZ) against the gym chain FitX. According to VBZ, FitX's website didn't meet the legal requirements to make contract cancellation easy and intuitive for users.
Previously, when customers attempted to cancel their FitX gym membership, they were sent to a screen where "Pause your contract via self-service" was clearly visible in bright orange text.
So customers were being directed toward a process to pause their membership rather than cancel it. To get to the actual cancellation form, customers had to scroll further down the page.
On July 16th, Germany's Federal Court of Justice agreed: according the ruling, contract cancellation pages must lead directly to the cancellation process.
Who's affected?
Though the ruling was prompted by FitX, it goes beyond gyms to all manner of online contract providers, including streaming services, newspapers, energy and telecommunications.
Loans, insurance and other financial services, however, are exempt.
According to the VBZ, the decision marks a "milestone" for consumer protection rights in Germany.
"It makes it clear that anyone who clicks the cancellation button must actually be able to cancel – without distractions, without detours, without tricks," said VBZ executive director Ramona Pop.
"Companies must not use the confirmation page to try to dissuade people from cancelling after all. That is precisely why the cancellation button was created: as a clear, reliable way to opt out of online contracts."
What companies can and can't do?
Companies may continue to ask for the information they need to identify the contract. This means that a contact form can ask for data such as your full name, email address, home address or contract number.
But they are not allowed to put unnecessary hurdles in place. These include making counter-offers like special discounts, promoting alternative tariffs or floating the option of pausing the agreement instead. It also includes unnecessary login requirements, which can make it harder for users to terminate their contract.
Once the required details have been provided, a visible and clearly labelled button must trigger the cancellation.
Finally, the cancellation must be submitted via a clearly labelled button. Under Section 312k of the Civil Code, the button and the confirmation page must be permanently available and easily accessible.
Know your rights
If you encounter obstacles while trying to cancel a contract online, it's important not to give up too easily. Any promotional offers, adverts or offers to pause the contract should be saved as a screenshot immediately. Make sure you include the web address, date and time in your screenshot.
Try and locate a button that says "Cancel now" (Jetzt kündigen) and use it to submit your request.
If you can't find one, search for a customer service email address and send your full details in an email with a brief notice of cancellation.
"Hiermit kündige ich meinen Vertrag fristgerecht zum nächstmöglichen Zeitpunkt," (meaning "I hereby cancel my contract at earliest possible deadline") is a good phrase to use.
Don't feel pressured into a phone-call to cancel your contract. In the case of most small contracts - like online streaming services or gym memberships - an online process should be sufficient.
Once you submit a request for cancellation online, providers must confirm the contract termination immediately. Be sure to save any confirmation you receive and make a note on your contract end date.
If providers don't follow the law, any deadlines for terminating your contract may be lifted. If in doubt or in need of legal support, contact your local consumer protection group.
Useful vocabulary
cancel a contract - (einen) Vertrag kündigen
the federal consumer protection agency - (die) Verbrauchzentrale
obstacles - (die) Hindernisse
cancellation deadline - (die) Kündigungsfrist
