No more automatic renewal

5th March 2007, Comments 0 comments

5 March 2007, AMSTERDAM – The Labour Party (PvdA) submitted a new bill on Monday to protect consumers against unwanted "silent renewals" of contracts with gyms, magazine and newspaper subscriptions, motorist assistance services, book clubs, and internet and cable television providers.

5 March 2007

AMSTERDAM – The Labour Party (PvdA) submitted a new bill on Monday to protect consumers against unwanted "silent renewals" of contracts with gyms, magazine and newspaper subscriptions, motorist assistance services, book clubs, and internet and cable television providers.

The PvdA submitted a similar bill earlier, but MPs Ferd Crone and Martijn van Dam amended their initiative after criticism from the Council of State and special interest organisations. Consumers are often required to give three months' notice before a contract end date in order to terminate the contract, or otherwise be subject to an automatic silent renewal of a year.

The PvdA wants to prohibit businesses from being able to automatically renew contracts silently for a full year.

After an initial contract, an automatic renewal should only be possible for a maximum of three months. Or, companies should be allowed to automatically renew a contract after the initial contract, but for an indefinite period with a one-month notice period from then on. This should apply for all commercial businesses, but not for membership in associations.

[Copyright Expatica News + ANP 2007]

Subject: Dutch news

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