June 14, 2023, 6:57 am | Read time: 3 minutes
The Federation of German Consumer Organizations (vzbv) sued Deutsche Telekom and won. The lawsuit was prompted by the special termination right in the event of a price reduction. TECHBOOK explains what the ruling means for customers.
On December 1, 2021, the TKG amendment came into effect, granting consumers, among other things, the right to reduce payments for slow internet connections. For example, if someone receives 20 percent less performance than contractually agreed, they can reduce their payment by the same percentage. This requires proof of the deficiency, such as through the Federal Network Agency’s app. In one case, Deutsche Telekom granted a customer such a price reduction but denied them a special termination right. The vzbv filed a lawsuit against this.
Telekom Cannot Exclude Special Termination Right
According to the Federation of German Consumer Organizations, a customer complained to Telekom about their slow internet connection. They had subscribed to the MagentaZuhause L plan with VDSL 100 for 44.99 euros per month. However, the contracted speed of 100 Mbit/s was not fully delivered. Telekom therefore reduced the monthly base fee by 5 euros. However, the confirmation letter included a sentence that later became the basis for the lawsuit. Telekom wrote: “With the reduction, the special termination right for the contract is void.”
In this case, Telekom excluded a special termination even after a price reduction, if the speed remained consistently below the contractually agreed bandwidth. The vzbv saw this addition as misleading consumers about their rights and filed a lawsuit with the Cologne Regional Court.
The court ruled in favor of the vzbv in its decision (33 O 315/22). Excluding a special termination right after a reduction in the base fee by Telekom misrepresents the legal situation and is therefore misleading. With the introduction of Section 57, Paragraph 4 of the Telecommunications Act, the legislature has given consumers the opportunity to “defend themselves against contractual deficiencies.” In such cases, customers are entitled not only to a reduction in the monthly base fee but also to a special termination right, provided the conditions of Section 314 of the German Civil Code are met. This section states:
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Ruling is Clear
The ruling confirms that customers not only have the right to reduce the price if a provider cannot ensure the booked internet speed. They are also entitled–as in the Telekom case–to a special termination right, allowing them to terminate their contract extraordinarily. “A reduced data transfer rate does not become a contractual service due to a price reduction,” according to the vzbv.
In one aspect, however, the vzbv was not successful before the Cologne Regional Court. According to the ruling, Telekom’s statement about the elimination of the special termination right does not constitute a verifiable contractual condition. Both parties have appealed the ruling to the Cologne Higher Regional Court (6 U 76/23).