Law on the monthly right of termination: This is how consumers protect themselves from subscription traps.

Law on the monthly right of termination: This is how consumers protect themselves from subscription traps.

According to a report by www.rosenheim24.de, a new law is intended to protect consumers from subscription traps by allowing contracts to be canceled monthly after the minimum term. However, the consumer advice center has found that many companies do not comply with this regulation and use invalid clauses in their contracts.

An investigation showed that of 828 providers checked, 85 companies received a warning because they did not comply with the new regulations. In addition, 50 companies showed insight and took appropriate steps, while 31 cases are still being investigated. Nevertheless, there are companies that show no insight and continue to use invalid clauses.

Smaller companies without their own legal department are particularly affected by the violations and are often not informed about the latest legal developments. It was also noticeable that a large number of energy suppliers have a considerable need for improvement in the implementation of the legal regulations in their contracts.

The federal government is planning further improvements for consumers, including written confirmation of consumer contracts concluded over the phone and a possible reduction in the minimum term of contracts from two to one year. Although these projects are set out in the coalition agreement, implementation is still pending.

Overall, it is clear that the new legal regulations pose major challenges for companies and force them to adapt their contracts to the current legal requirements. The impact of these adjustments on the market could be significant and protect consumers from unjustified contract extensions in the long term. However, it remains to be seen how companies will respond to these challenges and what further improvements the federal government is planning for consumers.