ACM: do not pay for invalid subscriptions to discount websites

Via its consumer information portal ConsuWijzer, the Netherlands Authority for Consumers and Markets (ACM) has been receiving noticeably a lot of indications about aggressive telemarketing calls regarding subscriptions to online discount platforms. ACM is warning consumers because it constantly sees new businesses employ these practices. Consumers do not have to pay for their subscriptions if these have been taken out over the phone. An agreement is only valid if a consumer has agreed to the offer in writing. ACM has noticed, however, that businesses offering said services put pressure on consumers to pay after all. By not paying, consumers are able to help put an end to these undesirable practices.

Why consumers do not have to pay

Consumers are approached over the phone to take out a subscription to an online discount service or cashback service. They are subsequently granted access to a website, where they can take advantage of special offers or where they are able to earn points with each purchase, and where they can redeem those points. There are rules in place that protect consumers, preventing them from being stuck to an agreement if they are approached by telemarketers with offers, for example:

• If a business sells said subscriptions over the phone, it must send a paper copy of the offer first. An agreement is only valid if a consumer has agreed to the offer in writing. To agree in writing means that the consumer signs the offer or sends an email or letter stating that they agree to it. Without a signature, the agreement is invalid, and the consumer does not have to pay anything. This is the so-called ‘written-consent requirement’.
• Even if the payment is done in one go, the written-consent requirement still applies. After all, it is a service for a longer period of time. When taking out such services, the written-consent requirement applies.
• Making an audio recording at the end of a telephone call (the ‘voice log’) is not considered a written consent.

• In addition to the fact that the consumer has to give consent in writing, the seller must be clear about their offer, the costs and the conditions (such as the duration of the agreement, the period of notice, and the cooling-off period).

What are consumers able to do?

Consumers that have not given their written consent for a subscription to an online discount platform do not have to pay, even if they receive debt collection letters or if a debt collection agency threatens them with a summons or high costs. Consumers who are faced with these kinds of practices can find more information on ConsuWijzer (in Dutch).

ACM takes enforcement actions against businesses that do not comply with these rules. ACM has previously acted against a number of businesses that offered these online services. They have subsequently stopped their practices. ACM, however, constantly sees new businesses that employ these practices. That is why it is important that consumers know what their rights are, and know what they are able to do. In the meantime, ACM will continue to commit itself to tackling this issue.