The most common form and duration of a mobile phone contract with the carrier are often tied for two long years in Europe, this problem is being looked by the Federal Ministry of Justice and Consumer Protection Germany now.
The government is mulling to cap the contracts that are considered two long, extensions, notice periods and maturities would be capped.
The Federal Minister of Justice Christine Lambrecht (SPD) and her subordinates are working on a draft law, the law would compel contractors to limit any kind of contracts to a maximum period of 12 months or 1 year.
The contracts might also include Gas, Electricity, Gym Membership, Internet, and other subscriptions, however, specifically, mobile phone contracts are the nearest targets. Most of the carriers not only in Germany but also in entire Europe including UK, France, Ireland, Scotland often tie customers with the minimum bounding of 24 months and from customer’s point of view it is too long, Lambrecht said.
The new law when becomes effective would only allow companies to create/offer only 1-year term contract, 1 month notice period for cancellation and extension by a maximum of 3 months.
The minister stated: ” Long contract periods and automatic 1-year extensions hidden in the terms and conditions are annoying and expensive.” With such clauses, companies often tie their customers unnoticed and prevent them from switching to cheaper and more attractive offers We will put a stop to that with the Law on Fair Consumer Contracts! ” The new draft law is still under the development phase, it will take some time to appear on the surface and become applicable in Germany.