FAQ
As of: 25.06.2021 10:03 a.m.
During the night, the Bundestag launched several laws for improved consumer protection. The focus is on innovations in contracts. The most important changes at a glance.
Why is?
The Bundestag finally voted on four consumer protection bills that night, which it had already debated in the first reading in February. This is about improved protection for long-term contracts, for example with cell phone operators. Switching between electricity and gas suppliers should also be better regulated. In addition, there is an obligation to update digital devices.
What changes in contracts?
Long-term contracts – for example with cell phone providers, energy providers or even in fitness studios – should no longer be automatically extended. As a rule, contracts can only run for one year in the future. Longer terms of up to two years are only allowed if the customer also receives an offer for a one-year contract, which may be a maximum of 25 percent more expensive on a monthly average than the contract with a longer term. Even in connection contracts, the price may not be increased by more than 25 percent.
If a company wants to automatically extend contracts for more than three months, it has to indicate the possibility of termination on its own initiative. The notice period is generally shortened from three months to one month. In future, there must also be a “termination button” on the Internet so that contracts can be terminated there just as easily as they were concluded.
Consumers who want to change their electricity or gas supplier will in future have to do so in writing – by post or by email. With this, the federal government wants to better protect people against a change of supplier or contract imposed by telephone and to strengthen their position in the event of a dispute.
How does politics justify the changes?
From the perspective of the Federal Government, (too) long contract terms often prevent customers from switching providers. “Long contract terms and long notice periods restrict consumers’ freedom of choice and prevent them from switching to more attractive and cheaper offers,” explains Federal Justice Minister Christine Lambrecht.
What are digital devices all about?
In the future, devices with digital elements will have to be updated. Manufacturers must provide owners of hardware such as tablets, cell phones or smartwatches with the latest software and operating systems. The federal government wants to ensure that the functionality and IT security of the devices are guaranteed. This is the implementation of an EU directive in German law.
How long the update obligation applies to a device is not precisely regulated in the law. It simply states that it is about a period of time that the customer can expect “based on the type and purpose” of the device. Decisive for these expectations of the customer can be advertising promises, related materials or the price, i.e. the higher quality and more expensive a product, the longer it will be provided with updates.
What changes in terms of warranty and guarantee?
Digital device vendors must ensure that they are free of defects at the time of sale. If there is damage to the product, the assumption will generally apply for one year that the defect already existed at the time of sale. So far this has only been true for six months.
The provisions for guarantees have also been amended. For example, a guarantee declaration must in future be made available to the consumer on a “permanent data carrier” – for example in paper form or by e-mail. The declaration must clearly state that the guarantee remains unaffected by the statutory warranty rights and that the use of these statutory rights is free of charge.
What is the opposition saying?
The FDP and the Greens would have wished for even more extensive regulations in various areas and had formulated corresponding proposals. The FDP is particularly bothered by the fact that some electricity or mobile phone providers advertise low monthly payments in the first few months of a new contract, but then charge much higher costs. That is why the Liberals wanted to oblige commercial providers to indicate a monthly average price, even when a contract was initiated. Such a regulation should also be implemented at European level, demands the FDP.
The Greens had campaigned for a ban on telephone advertising and the implied contracts. According to the Greens, unwanted phone calls have been a significant problem for many consumers for years, who are not only bothered by them, but are also often offered unwanted contracts.