Telecom customers must be better informed about contract changes
Telecom providers should clearly inform their customers about changes to their contracts. They cannot simply assume that silent subscribers automatically agree with changes to their contracts. Instead, subscribers should be clearly informed about each proposed contract change. If subscribers disagree with such changes, they should be able to cancel their contracts free of charge. This is the tenor of new regulations published today by the Netherlands Authority for Consumers and Markets (ACM), the regulator of the Dutch telecom market. These regulations further clarify Section 7(2) of the Dutch Telecommunications Act.
ACM steps up its oversight
“Anyone with a phone plan should be able to trust their telecom provider to offer clear information about any contract changes. It is troubling that, in reality, this has not always been the case. With these new regulations, ACM is stepping up its oversight of the commercial practices of telecom providers. If necessary, we will take action against telecom providers that do not comply with these regulations.”
Inform subscribers at least one month in advance
The new regulations require telecom providers to inform subscribers clearly about the details of a proposed change at least one month in advance. During holidays, this pre-announcement period can even be a little longer. Subscribers must be aware of the proposed changes. It is no longer acceptable that customers are only able to discover an unfavorable change when comparing the new agreement with the old one, nor that customers are afterwards confronted with changes of which they had been unaware. If subscribers disagree with any of the proposed changes, they must be able to cancel their contracts without having to pay a cancellation fee.
‘Opt-out’ leads to unfavorable situations
Drastic changes to their contracts that are hidden somewhere in an email from their telecom providers appear to be a thorn in the side for customers. And if subscribers do not respond on time, telecom providers automatically assume that subscribers agree with the changes. This practice is called ‘opt-out’.
“It is good to see that subscribers are now protected against opt-outs. From now on, ‘opt in’ will be the norm: subscribers must have given their consent to any proposed changes.”
Many indications
ACM regularly receives complaints from harmed consumers and business owners through ConsuWijzer, its consumer information portal. Mr. Don adds: “A well-known example is that small-business owners who want to cancel their contracts free of charge are suddenly required to pay a cancellation fee. It then turns out that the telecom provider has changed the expiration date of the agreement, without having clearly informed the small-business owner. Thanks to the new regulations, such practices now belong to the past.”