In many cases consumers enter into a contract with an electronic communications service provider. A number of clauses of the Telecommunications Act are specifically devoted to such contracts. For instance, the relevant term of notice is stipulated. However, a consumer is also granted the right to cancel his contract before its term expires, if his service provider amends its provisions.
New regulations
As of 1 July 2009 providers of electronic communications or programme services are required to give consumers one month’s notice. This is set out in a new clause (Section 7.2a) of the Telecommunications Act. This applies to both new and existing customers. Any customer whose contract has been renewed (and whose initial term has expired) is therefore entitled to one month’s notice as of 1 July 2009, immediately after this legislation came into effect, even if the relevant provider fails to incorporate this in his terms and conditions on time.
A month’s notice commences, as soon as a customer gives notice of his intention to cancel. As such, this period is not tied to a contract or calendar month. Suppose that on 6 September a customer gives notice of his intention to cancel his contract, it will terminate on 6 October.
The law draws a distinction between contracts for an indefinite term and those for a definite term (for example, one or two years):
- a consumer may always cancel a contract for an indefinite term by giving one month’s notice;
- in the case of a contract for a definite term after the initial term expires subject to one month’s notice.
Cancellation when terms and conditions are amended
A service provider may not simply amend his terms and conditions. Section 7.2 of the Telecommunications Act stipulates that a provider of electronic communications or programme services is required to do the following, if he amends an agreement:
- he must notify his subscribers of the nature of the proposed amendment no less than four weeks before it is scheduled to come into effect;
- if the amendment is not in his subscribers’ interests, he must offer them the opportunity to cancel their agreement without being penalised;
- at least four weeks in advance he must inform his subscribers of their right to cancel.
All subscribers are entitled to cancel, hence both consumers and business customers.
Term of notice and right to cancel
The rules governing both the right to cancel in the event of a contractual amendment and the term of notice of one month apply in the case of consumers. Even if a consumer is entitled to one month’s notice in the event that his contract is amended, his service provider must inform him of the amendment concerned and his right to cancel. In all cases this must happen four weeks in advance.