The amendment to the Telecommunications Act (TKG), which came into force at the end of 2021, brought consumers a number of advantages that better protect them against the machinations of some telecommunications companies. Many previously remained involuntarily tied to their telecommunications contracts; new contracts were imposed on them over the phone.
No more involuntary contract extensions
After their conclusion, mobile phone contracts were repeatedly extended by one year without timely termination. Anyone who wanted to terminate the contract had to keep an eye on when they had to act. As mobile phone costs have fallen steadily in recent years, many people were stuck with very expensive contracts. Automatic extensions for another year are no longer permitted. Customers can cancel monthly after the first contract term has expired.
However, mobile phone companies continue to offer mobile phone contracts lasting 24 months. A new one can be concluded by concluding such a contract Mobile device finance. We explain in our special “Mobile phone with or without contract”when it’s worth it.
More protection for cell phone contracts on the phone
Consumers can conclude telecommunications contracts over the phone. However, there is always the risk that a professionally trained team will force you to do something you do not want to do. The TKG stipulates that customers usually receive a written summary of the contract, which they can approve or reject. Without consent, the contract is not valid and providers have no claims against their customers. Even if, for example, they had already increased the transmission speeds.
Unfair methods in court
Mobile phone companies are still trying to force customers to sign contracts. In some cases, they use unfair methods. In two ongoing lawsuits, consumer advice centers are seeking to put an end to such practices.
Bad points
- Case 1: Vodafone. Since the end of 2021, telecommunications companies have had to provide their customers with a comprehensible contract summary before concluding a contract. A Vodafone employee tried to circumvent this regulation. During a promotional call, he sent a customer an email with contract information about the presented internet tariff. The employee asked the man to click on a link contained in the email. This would mean that the order had been placed and the new tariff had been requested. The Federal Association of Consumer Organisations (vzbv) has taken legal action against this practice. The Munich Regional Court explained that the contract summary should give consumers sufficient time to compare one offer with another (ref. 4 HK O 11626/23, not yet legally binding).
- Case 2: Primacall. As soon as customers had committed to Primacall for 24 months, an offer came along: a bonus of 20 euros if they extended their contract for another 24 months. Those who agreed were bound to the provider for almost four years. However, the Telecommunications Act limits initial contract periods to 24 months. The consumer advice centre (Vz) in North Rhine-Westphalia found Primacall’s practice to be illegal. The term “initial minimum contract period” appearing in the contract should include contract extensions. The consumer advice centre was initially ruled in favour of the Düsseldorf Higher Regional Court and now by the Berlin Court of Appeal (ref. 23 UKI 1/24). Now the Federal Court of Justice will decide.
Providers must provide information on new tariffs
An old rental contract usually has a very positive effect on the monthly budget – in the telecommunications sector the opposite applies: those with an old contract often pay too much and do not even realize it. The telecommunications amendment stipulates that providers must provide information about new suitable tariffs once a year. This should not only happen over the phone.
I don’t accept any more interruptions
The telephone line is dead, the screen remains black – providers must react quickly to such situations because customers have the right to have the problem resolved quickly. Companies are obliged to inform if the interruption lasts more than one calendar day. From the third calendar day after receiving the report of the fault, customers are entitled to 10 percent compensation in the event of a failure in the telephone and Internet connection, and from the fifth day it is 20 percent.
Possibilities when the internet is slow
If a contract does not deliver what it promises, the telecoms amendment gives consumers the right to terminate the contract without notice or to reduce rates by a percentage if the provider’s performance is poor. The Federal Network Agency has provided a desktop tool for measuring network speeds, which is available at: www.breitbandmessen.de can be downloaded. The program detects whether there is a “significant, continuous or regularly recurring deviation” from the contractually agreed speed and creates a protocol with which the request for reduction can be proven against the supplier. The complaint exists if there is at least one of the following defects:
- 90% of the promised maximum speed is not delivered at least once per measurement day.
- The minimum speed advertised is sometimes exceeded at least once in two days.
- The typically available speed is achieved in less than 90% of measurements.
To do this, consumers must carry out a total of 30 measurements on three different days. Important: In order for the measurement to be considered valid, it must be carried out via a LAN connection, i.e. via cable.
Termination without notice in case of contractual changes
If a telecommunications provider changes its contractual terms and conditions, customers can terminate their contract without notice. This regulation only does not apply in exceptional cases – for example, when the changes are exclusively for the benefit of customers or have no negative effects on them. Even if a change in the law obliged providers to make contractual changes, termination without notice would no longer be possible.
Other improvements for consumers
Even with contracts Gyms and energy suppliers, the automatic extension of the contract was limited to one year. The Consumer Fair Contracts Act hold more more consumer-friendly regulations before.
Tip: If you contact your wireless provider about unauthorized information Third Party Charges argue about your cell phone bill, don’t give up, fight back. The law is on your side.