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How Germany has made it easier to cancel broadband and phone contracts

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What’s going on?

On December 1st, new amendments to the Telecommunications Act came into force in Germany. The updates bring with them wide-ranging changes to consumer rights laws for people who’ve signed – or will sign – new mobile, landline and internet contracts.

The headline change relates to the amount of time contracts are allowed to run for after they renew. If a customer signs up to a 24-month mobile contract and doesn’t cancel before it renews, telecommunications companies will no longer be allowed to sign that customer up for another one or two years without their permission.

Instead, people who don’t cancel in time will be put onto a one-month rolling contract that essentially allows them to terminate at any point with just one month’s notice.

It’s an end to a tax on the disorganised that has seen people stuck paying for contracts they no longer want or need for up to 24 months longer – often at higher prices than they agreed when they first signed the contract.

Does that mean all contracts will be rolling contracts?

Not exactly. As before, most new contracts will run for a minimum 24-month term – so expect to be locked in for at least this long, unless you specifically look for a more flexible contract. 

The change affects what happens after this initial term is up, meaning if you do sign up for a yearly contract, one year won’t automatically turn into two if you don’t remember to cancel it in time. 

READ ALSO: Everything that changes in Germany in December 2021

What else is new?

Alongside the key changes to contract durations, there are also changes to the way in which contracts are agreed and tougher standards for internet providers.

In future, if you agree a contract over the phone, you have to receive a summary of the terms of the contract and confirm it in writing before the agreement is legally valid. 

This summary must include the service provider’s contact details, a description of agreed services, details of any activation fees, the duration of the contract and any conditions for renewal and termination. Without written approval, the contract has no legal standing and the provider has no claims against the customer – even if they switched to the new services immediately after the telephone call.

A young man on the phone in Hannover
A young man takes a phone call on a tram in Hannover. Under the new changes, contracts agreed over the phone will not be valid until they are confirmed in writing. Photo: picture alliance/dpa | Hauke-Christian Dittrich

If a provider makes a change to a contract after it’s up and running, customers now have the right to terminate without notice.

In future, providers must inform customers if there are more favourable offers available and a change to a new contract would be possible.  This must happen once a year, and once again, providers aren’t allowed to do this solely over the phone. 

For broadband customers, there’s more good news: internet providers will in future face issues if they don’t provide the bandwidth stated in the contract. 

That means that if your internet is slower than promised, you should have the right to pay a reduced price or terminate the contract. 

READ ALSO: Moving house in Germany: 7 things you need to know about setting up utility contracts

I signed a new contract a while ago. Do the new rules still apply? 

Yes, they do. Regardless of when you signed your new contract, the amendments to the Telecommunications Act will apply. 

That means that once your initial contract period is up, you should be able to cancel freely and only pay for the month’s notice. You should also be informed of any changes to your contract or better offers and be eligible for compensation if your internet goes below the promised bandwidth. 

If you’ve already been locked in to a 12- or 24-month contract through an auto-renewal, the situation is a bit less clear – but it may be worth contacting your provider and asking them if the terms of your contract have changed in light of the new law. 

READ ALSO: Has it just got easier to end credit agreements in Germany?

What are people saying?

The Telecommunications and Value-Added Services Association, which represents the industry, said it was important than the initial 24-month contracts were allowed to continue. The subsequent new notice periods are a good compromise, VATM Managing Director Jürgen Grützner told Tagesschau

“On the one hand, this means better financial forecasting for expanding providers’ networks and, on the other hand, the best of both worlds for consumers,” he added. 

Campaign for faster internet
“We need fast internet!” is scrawled in huge letters across a street in Weetzen, Lower Saxony. Photo: picture alliance/dpa | Ole Spata

However, Grützner believes the new rules on bandwidth could cause difficulties for providers who struggle to offer the same quality of internet across all regions. 

Meanwhile, consumer rights advocates have welcomed the improvements to contract law. 

In particular, the Federal Consumer Advice Centre “expects competition to improve as a result of the new regulation, including the price-performance ratio,” Susanne Blohm from the organisation’s Digital and Media Division told Tagesschau.

In an initial sign of the regulation’s positive impact, the provider Telefonica has announced that it will abolish surcharges for contracts that don’t have a minimum cancellation period. 

Vocabulary

amendments – (die) Novelle

bandwidth – (die) Bandbreite 

minimum contract term – (die) Mindestlaufzeit 

provider – (der) Anbieter

We’re aiming to help our readers improve their German by translating vocabulary from some of our news stories. Did you find this article useful? Let us know.



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Government rejects calls to introduce a right to work from home

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The Government has rejected calls to introduce a right to work from home, promising instead to legislate for a right for employees to request home-working.

Opposition politicians have called for a right to work remotely.

However, Tánaiste and Minister for Enterprise Leo Varadkar said that while the Government’s proposed Bill would require employers to consider such requests, they would still be able to reject them.

He argued that employers are more likely to grant requests to work from home for fear of being brought to the Workplace Relations Commission (WRC) – which will be the appeals mechanism in the new law.

Cabinet is set to consider the proposals as hundreds of thousands of workers face a gradual return to the office over the coming weeks.

Unions have said that employers must consult with their members about the return to on-site working and ICTU chief Patricia King warned that some workers will not be able to return for health reasons.

Mr Varadkar said new safety protocols are to be published by the end of the week as he spoke about the Government’s plans to legislate for the right to request remote working.

The proposed Bill will set out a legal framework whereby an employer can either approve or reject a request to work remotely from an employee.

‘Change the culture’

Social Democrats co-leader Catherine Murphy has said the Government must give workers a legal right to work remotely, “not merely the right to request flexible working arrangements”.

She said the Government’s plan “does not go far enough” and “The default position should be that flexible working is permissible. It should not be at the whim of employers to accept it or reject it.”

Labour’s employment spokeswoman Senator Maire Sherlock has criticised the Government for not moving quicker to address the issue of people returning to the workplace and called for legislation that guarantees the right to flexible work.

Sinn Féin’s spokeswoman on Enterprise Louise O’Reilly said the planned legislation should be “more robust” and that no reasonable request from an employees should be refused.

She acknowledged that not all requests can be granted because not all work can be done remotely but said: “the emphasis should be on the right to have it rather than the right to ask for it”.

Mr Varadkar said there was a lot of work done with the Attorney General and “Government can only interfere in contracts that employers and employees have signed to a certain extent.”

He also pointed out that remote working isn’t always going to be possible – pointing to education, healthcare, manufacturing and hospitality as examples.

Mr Varadkar said: “What we want to do is get to a position whereby remote working/home working becomes a choice and that employers facilitate that provided the business gets done and provided public services don’t suffer.”

He said that the Government does not want things to go back to the old normal for working arrangements post-pandemic.

“We want to see more remote working, more home working, more hybrid working”.

Mr Varadkar said he believes the legislation can “change the culture” and that employers will embrace it.

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Travel agents experiencing increase in bookings since Covid-19 restrictions eased

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Travel agents are experiencing an increase in inquires and bookings since the government announced the relaxation of Covid-19 restrictions on Friday.

Pat Dawson, CEO of the Irish Travel Agents Association, says there has been a “phenomenal” turn around in bookings, and travel agents are busy getting back to inquiries.

“We are looking at a healthy summer season, it’s the first time I’ve been positive in two years.”

He advised people to book their holidays early to avoid disappointment. “The longer you leave it, the dearer it will get. Mid-term break in February and Easter are almost full.”

Mr Dawson believes there is a pent-up demand. “There are some people who have money they haven’t spent, a big chunk of that will be spent on foreign holidays.”

John Spollen, director of Cassidy Travel in Dublin, says he has seen an increase in bookings over the weekend.

Popular destinations include Spain and Portugal, which have been Irish favourites for many years now, says Mr Spollen. There are also some bookings for the US, Jersey, Madeira and the Greek islands.

Peak travel

People should avoid peak travel times from mid June to the end of August and consider booking mid-week, early or late flights to get the best value, according to Mr Spollen.

“In May, September and October, the weather will be similar to summer weather.”

Mr Spollen added people should take out travel insurance and ensure their passport and driver’s licence are in date.

Michael Doorley of Shandon Travel in Cork said they have seen a huge increase in inquiries.

“We are not back to 2019 levels yet… the EU is a big destination. We have had a lot of inquires about mobile home holiday parks. Italy would be the most popular destination for this type of holiday, but Croatia is becoming almost as popular.”

There are also bookings for America coming in, as well as some couples celebrating their honeymoons belatedly, according to Mr Doorley.

It is important that people understand the restrictions in the country they are travelling to, he added, and they should check the Department of Foreign Affairs website regularly.

Aoife O’Donoghue is just one of the many Irish people who have not been on a holiday abroad in two years, and she is excited to be going to Barcelona at the end of March.

“A friend is moving over there in February, so myself and two other girls are going to visit her. It’s actually all our birthdays that weekend too,” she says.

The friends used to live together in Galway, and Ms O’Donoghue says it’s fantastic to have something to look forward to again.

The last time she went abroad was to Switzerland in January 2020. “Just as we were coming back there was news of the big Covid outbreak in Italy, so felt lucky to have gotten a holiday in before it all kicked off.”

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Property group clashes with council over Dundrum residential development

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The owners of Dundrum Town Centre have clashed with Dún Laoghaire-Rathdown council over demands for more large apartments as they advance fast-track plans for a major residential development in the south Dublin village.

Property group Hammerson and insurer Allianz, which operate the new shopping complex in the area, have been in talks with An Bord Pleanála to build up to 889 apartments on the site of the old Dundrum shopping centre.

Their company, Dundrum Retail Ltd Partnership, has told the council it should scrap new requirements for “a minimum of three-plus bedroom units” in large apartment blocks that are included among proposed amendments to its draft county development plan.

In a submission last week to the council, the company said the new guidelines were in conflict with official rules that said there should be no minimum requirement for apartments with three or more bedrooms.

According to the company, the justification for the guidelines was based on fast-track strategic housing development permissions in the council area and “evidence” from certain boroughs in London.

“[Dundrum Retail Ltd Partnership] submit that the logic underpinning the policy is flawed and is not a basis for imposing prescriptive unit mix ratios on a countywide basis,” it said.

“The draft development plan needs to be amended to remove the very prescriptive requirement for apartments with three or more bedrooms and to allow applicants to make the case for a particular unit mix based on the particular attributes of local areas where a different mix might be appropriate.”

The company also told the council that proposed amendments to the development plan presented “contradictory or ambiguous objectives” in relation to proposals for a community, cultural and civic centre in the area.

Such objections were included among 106 submissions on the draft plan in a public consultation which closed last week. Numerous other developers and the Irish Home Builders Association lobby group also opposed the measures, some saying they would delay or prevent the delivery of new homes.

Asked about the submissions, the council said the response to any issues raised would be set out in a report by its chief executive to elected members which would be published. “It will be a decision of the elected members to adopt the plan and it is anticipated that this will take place in early March 2022. The plan will then come into effect six weeks later,” the council said.

Cost increase

In its submission, the Irish Home Builders Association said its members were concerned that the introduction of “further onerous standards” would increase the cost of delivering new homes and their price.

“This at a time when construction costs are already under huge inflationary pressure and affordability is a major issues for most home buyers,” said James Benson, director of the association.

“A key concern of the home-building sector in respect of the new plan is a lack of consistency with national planning guidelines/standards, which may be considered to be contrary to recent Government policy which sought to bring a greater extent of standardisation to national planning standards.”

The submission added: “The key concerns relate to the locational restriction and unit mix requirements for [build-to-rent] schemes, other standards for apartment developments which are more onerous/restrictive than the Government’s… guidelines, and the requirement for early delivery of childcare facilities in residential developments, all of which have the potential to impact adversely on the viability and affordability of housing in the county.”

Another builder, Park Developments, said in a submission the draft sought “more onerous policies, objectives and standards” that would have a direct effect on housing supply. “We are already seeing the impact of the chronic shortage in the supply of housing on the affordability of rental accommodation and homeownership.”

Castlethorn Construction said the blanket imposition of three-bedroom requirements “can only serve to militate against development of apartments” in the council area. It said the cost of delivering three-bed apartments was “very significant”, adding that demand was “not evident by reference to market sentiment, estate agents’ advice” and national policy imperatives.

Developer Hines, which has major interests in the Cherrywood strategic development zone, said in its submission that the logic underpinning requirements for more three-bedroom units was flawed.

“While making the case that recent development has been weighted towards one- and two-bed units, it fails to recognise that three-bed semi-detached and detached houses remain the predominant typology within [Dún Laoghaire-Rathdown] and that the [strategic housing development] permissions provide a much-needed mix of housing types within the county to redress this balance within the county.”


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