ACM clarifies the rules regarding the information that telecom providers must give
Summary
- ACM has clarified how telecom providers must inform customers about expiring contracts and best available rates, so that they are able to avoid ‘loyalty penalties’.
- Customers must receive a clear, personalized message in advance, which includes the end date, cancellation options, and a price comparison.
- The policy rule is a draft version. Telecom providers and stakeholders can submit their input.
The Netherlands Authority for Consumers and Markets (ACM) has clarified how telecom providers must inform their customers about the end date of their contracts, and about the best available rates. Improved information can help customers make an informed decision about their contracts. As a result, they will be informed of potential savings on their telecom contracts.
Telecom providers are statutorily required to inform customers about the expiration of their contracts and about the right to terminate the agreement free of charge. Additionally, providers must, at the end of the contract and at least once a year, provide information about the best available rates. A previous ACM study revealed that, in practice, this does not always happen uniformly or with the same level of clarity.
That is why ACM has clarified in a policy rule how telecom providers must inform their customers. As a result, customers will have more clarity about the expiration of their contract period, what choices they have, and whether a more economical alternative is available.
Manon Leijten, Member of the Board of ACM, explains: “Many people have had the same contract for years and, due to annual price increases, pay more than new customers for the same service. That is tantamount to a loyalty penalty for loyal customers. The policy rule seeks to make sure that customers are better informed so that they are able to make an informed choice and do not pay more than necessary for telecom services.”
When and in what form
The new policy rule stipulates that customers must receive a clear message no later than one month and no earlier than three months before the end of the initial contract period. This message must be sent to the customer on a so-called ‘durable medium’. ACM sees that, in practice, customers are often directed to a website where they must search for the relevant information themselves. That is not sufficient. The message must be recognizable as a separate message, and cannot be hidden in an invoice or promotional email.
What information must the message contain?
The message must clearly state on what date the initial contract period ends, and that the customer can terminate the agreement free of charge from this date. Additionally, it must clearly explain how customers can cancel or choose a new contract. The message must be tailored to the individual customer’s personal contract situation. That means that the price breakdown of the current contract must be specified, which means that the costs for each service must be stated separately. If a more economical alternative exists within the telecom provider’s selection, the customer must be explicitly informed of this, and it must be easy to compare the different options at a single glance. Temporary discounts and bundle discounts, too, must be stated in a transparent manner so that the total costs for the entire contract period are clear.
Sample letter and enforcement
The policy rule also contains a sample letter. This letter complies with all the requirements in the policy rule. If providers use this letter, they will, according to ACM, meet the statutory information obligation to an adequate degree, in any case. ACM is authorized to take enforcement action if providers do not adequately meet (or fail to do at all) to meet the information obligations.
Consultation
The policy rule is a draft version. Telecom providers and other stakeholders have until October 27, 2026, to share their input to the proposal. Responses can be sent to %20acm-post [at] acm [punt] nl (acm-post[at]acm[dot]nl). ACM will take the responses into account when finalizing the policy rule, which is expected to be published before the end of the year.
Related topics
- 16-09-2026 Public consultation on policy rule regarding telecom information obligations (in Dutch)