Consumers beware: ECJ ruling on the subscription test phase is causing a stir!

Consumers beware: ECJ ruling on the subscription test phase is causing a stir!

How many of us haven't signed up for a free subscription only to find out after four weeks that we've switched to a paid membership without meaning to? The ECJ recently dealt with exactly this topic. On October 5, 2023, a judgment was issued (ref. C-565/22) that more clearly defines the rights of consumers in this context. A central point of the decision is that consumers are only allowed to cancel once after taking out a free subscription. In other words: If you don't cancel in a timely manner, you'll often find yourself in a cost trap.

The legal dispute between the Austrian Association for Consumer Information (VKI) and Sofatutor GmbH, a provider of an online learning platform, illustrates the problem. Sofatutor offers a 30-day free trial subscription that can be canceled at any time without notice. After the 30 days, the subscription automatically becomes chargeable. The VKI argued that consumers have a right of withdrawal even after conversion to a paid subscription if they have not been sufficiently informed about the total costs. The ECJ stated that this only applies in exceptional cases.

Test phases and notice periods

The advantage of the free trial phase is clear: consumers can test the services offered risk-free. For example, the website LR.de requires an uncomplicated cancellation within this test phase, which is free of charge until the end of the current week. From the fifth week onwards, users pay 19.66 euros for three months before the subscription goes into regular billing. Flexible termination at any time in the payment rhythm is also possible and can be done via the account area on the website or the app.

It is important to note that the cancellation period for the free trial subscription is 14 days in total and only begins when the consumer has been sufficiently informed. According to Section 312g Paragraph 1 BGB, the right of withdrawal also applies to distance selling contracts for digital content. This means that if there is anything unclear about the costs and contractual conditions, users should find out more information - otherwise they may find themselves without legal recourse.

Legal framework

The EU legal area is crucial for the legal framework. The ECJ ruling shows that consumers often find themselves in a bind when they are not fully informed about their rights and obligations. A right of withdrawal also expires at the latest after 12 months and 14 days after conclusion of the contract, which is another point that readers should keep in mind.

In summary: If you are clever and find out about the conditions of your subscriptions in good time, you can do good business and have no problems with the paid phase after a trial period. Therefore, always be careful and if in doubt, cancel straight away before it gets expensive!