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How you can benefit from the new Fair Consumer Contracts Act

By

Leon Braun

29.12.2021

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5

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How you can benefit from the new Fair Consumer Contracts Act

On October 1, 2021, a law that strengthens your rights as a consumer was introduced (in parts). This law primarily affects your contracts with providers of services such as mobile phones, magazines, and energy suppliers.

The changes will come into force in three phases:

  • From October 1, 2021 consumers may only be contacted by telephone for advertising purposes if a written declaration of consent to telephone advertising is provided.
  • From March 1, 2022, new regulations on automatic contract renewal will come into force. The maximum permitted cancellation period for contracts will be reduced from 3 months to 1 month. So, for example, if you have signed a contract for 12 months, you now have until the 11th month to terminate this contract without it being automatically renewed or extended.Automatic contract renewals will now only be possible with an indefinite contract term of 1 month's notice. To pick up on our previous example, if you forgot to terminate your contract by the 11th month, you may terminate your contract with just 1 month’s notice at any point after the 12th month.Additionally, from this date contracts can no longer be concluded or terminated over the phone. Written and signed confirmation will be required for both.
  • Finally, on July 1, 2022, websites that offer online contracts must also offer the option to cancel them online. This involves websites having a clearly marked cancellation button, that leads users to an uncomplicated cancellation process, as opposed to anything involving post or fax.


Why does Ostrom support these changes?

Ostrom believes in a fair and transparent electricity supply for all, which is why our tariff already features a flexible contract with just two weeks' notice.

We often hear about dubious business practices via our customers who’ve made the switch to Ostrom from other providers. Some customers reported that they unknowingly canceled their contract with their old provider during a telephone conversation—a trick often used to throw existing customers out of contracts that are now deemed uneconomical for the providers. These tricks can no longer happen under the new Consumer Protection Act.

Another problem our customers often face is with automatic contract extensions, which can tie them to their old electricity provider for up to two more years. The improvements to contract extensions set by the Fair Consumer Contracts Act are already standard practice at Ostrom. With us, there are no minimum contract terms, therefore no automatic contract renewals.

Get an Even Fairer Contract with Ostrom

Here at Ostrom, we consider the changes in the Fair Consumer Contracts Act to be the absolute minimum standard for fair contracts. In addition to our flexible contract, we offer exceptional customer support (in English and in German) as well as an app that allows you to keep track of your electricity consumption, payments, and the emissions you’ve saved. We offer all this in one single tariff, with a transparent pricing model that doesn’t require a complicated bonus system to attract customers—check out our Trustpilot reviews for the proof!

Photo by Tingey Injury Law Firm on Unsplash
And by Scott Graham on Unsplash
All data without guarantee. Aplus Energy GmbH does not offer legal advice.