EU proposes easier subscription cancellation and protection from digital traps
The Commission presented the Digital Fairness Act, proposing express consent after free trials and easy online contract termination. Legislative approval is still pending.
The European Commission proposed new safeguards for online purchases and subscriptions with the Digital Fairness Act presented on November 11. The package also includes a proposed Simplification Directive and a revision of the framework for cooperation between consumer protection authorities.
Under the proposed regulation, a free trial would not by itself bind a consumer to a paid subscription. Article 20 would require a reminder before the trial ends, setting out the price, duration and termination conditions, as well as express acceptance of the paid continuation. Without the reminder or that acceptance, the proposal says the consumer would not be bound by the contract.
For traders offering contracts through an online interface, Article 23 proposes a prominent, easily accessible online contract termination function. Traders would have to acknowledge receipt of the termination statement and specify when termination takes effect. The proposal also provides reminders before automatic renewals, with different rules depending on the contract’s duration.
More broadly, the proposal targets deceptive interface design, addictive features and practices encouraging overspending or exploiting vulnerable consumers. It also addresses social media influencers and obscure or misleading pricing practices, with a particular focus on protecting children.
For online customer service after a contract has been concluded, Article 25 proposes access to a human being at the consumer’s request when other means are ineffective. That particular provision excludes the investment services specified in the proposal.
This is a Commission proposal, not a regulation already in force. It must go through the legislative process in the European Parliament and the Council. The draft provides for application 12 months after its future entry into force, but the final wording and timetable depend on adoption and publication. Today’s contracts do not change automatically as a result of the announcement.
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