Government to protect consumers against tacit contract renewals
Belgian companies will soon be required to notify consumers when their contract is about to be tacitly renewed. A draft law on the matter was approved at the government’s last council of ministers. “This makes us pioneers in Europe,” said federal minister of Consumer Protection Rob Beenders.
Belgium will be the first country in Europe to require companies to notify consumers of an upcoming tacit contract renewal. The government sees the move as an important step towards maximising consumer protection and purchasing power.
“Consumers often feel cheated when they realise too late that their subscription has been tacitly renewed,” said Beenders. “Especially when it concerns subscriptions they actually no longer need.” He refers to subscriptions such as gym memberships or apps that people have to pay for on a monthly basis.
"Consumers often feel cheated when they realise too late that their subscription has been tacitly renewed"
“Every month, you see money leaving your account for something you don't need,” he said. “From now on, companies will have to notify their customers if their subscription is going to be tacitly renewed. This will give customers time to cancel their subscription if they no longer need it.”
15 days in advance
The proposed amendment introduces an obligation for companies that use tacit renewal clauses. They will have to inform customers in a clear, understandable and unambiguous manner about the upcoming renewal of their contract and the option to object to it.
This information must be communicated at least 15 days before the deadline by which the consumer can object to the renewal, for example by sending a letter, email or text message. The amendment ensures that consumers are able to make an informed choice about the continuation of the contract.
The legislation was approved by the council of ministers and will enter into force 12 months after its publication in the Belgian Official Gazette. This will give companies time to adapt their internal processes, systems and communication practices. Companies, including foreign companies, that do not comply with the new regulations after that date risk sanctions.
Minister for Consumer Protection Rob Beenders © PHOTO BELPRESS
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