The time has come. The Federal Ministry of Justice and Consumer Protection has published a new draft law. Among other things, it is intended to make cell phone contracts fairer and to sanction unauthorized telephone advertising more effectively.
On Friday, January 24, 2020, the Federal Ministry of Justice and Consumer Protection published a draft bill entitled "Draft Act on Fair Consumer Contracts." The press release states:
Despite intensive efforts to strengthen the position of consumers vis-à-vis the economy and to promote fair consumer contracts, cases continue to arise that require further protective measures.
The Federal Minister of Justice and Consumer Protection Christine Lambrecht explains in the statement:
Consumers are ripped off and taken advantage of far too often. Unfortunately, opaque contract structures and calculated cost traps are still the order of the day. We want to put a stop to this with the law for fairer consumer contracts. We want to shorten long contract periods and automatic contract extensions by one year hidden in general terms and conditions.
Shorter contract terms and contract extensions
For example, contract periods are to be reduced from two to one year. Contract extensions are also to be regulated anew. Consumers who miss the notice period will now have to make do with a three-month contract extension instead of a full year as before. Lambrecht also explains in her statement:
In addition, contracts for electricity and gas supplies concluded over the telephone will in future have to be confirmed by consumers in writing or by email. This will provide them with better protection against contracts that are forced on them or foisted on them.
Overall, the draft bill provides for the following measures:
- Prohibitions on assignment of monetary claims regulated in general terms and conditions (GTC) are to be ineffective in the future.
- General terms and conditions can only regulate shorter initial terms and automatic contract extensions.
- A confirmation solution will be introduced for distance contracts for energy supplies concluded by telephone, meaning that consumers will have to confirm gas and electricity supply contracts in writing or by email after the contracts have been made available on a data carrier.
- Businesses will be required to document and store consumers' consent to telephone advertising. This will help to combat unauthorized telephone advertising more effectively.
Accordingly, the amendment to Section 309 of the German Civil Code (BGB) should create better conditions for contracts and tighter controls on telephone advertising. Below you will find the links to the press release and the draft law. (Photo: Thomas Köhler / photothek)
