Consumer Protection Warns of Subscription Traps in Streaming Services

dpa

July 2, 2023, 8:09 am | Read time: 3 minutes

Booked a month of streaming service but got a whole year? Sounds like a good deal, but it’s not if you have to pay for the year. What you need to watch out for with streaming subscriptions.

Streaming service subscriptions can be canceled within fourteen days without giving a reason, as they are considered digital services. However, some providers still restrict this right in their terms and conditions, warns the European Consumer Center in Germany (EVZ). Even if they are in the wrong, you should avoid such streaming providers to prevent subscription traps. Always read the terms of use carefully beforehand. An alternative could be the streaming services of public libraries. Whether they are really worth it, TECHBOOK has tested.

Untrustworthy Providers Want to Circumvent Cancellation Rights

According to consumer advocates, exceptions to the two-week cancellation right exist only for digital content that can be downloaded and used immediately for a fee: such as individual e-books, music, or video files. Here, the right of cancellation may expire prematurely with the download.

The problem is that some untrustworthy providers not only deliberately misinterpret the cancellation right but also link it to a subscription trap, warn consumer advocates.

Also interesting: You should steer clear of these streaming providers!

Streaming Services Lure Customers into Subscription Traps

There are known cases where consumers intended to sign up for only a one-month subscription with a streaming service abroad in the EU, but then received an email confirmation for an annual membership.

When attempting to cancel the contract, providers have rejected it by referring to their terms of use: The fulfillment of the contract allegedly began immediately after the subscription was concluded, and the right of cancellation expired immediately.

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What Affected Consumers Can Do

Cancel the contract immediately, for example, using the EVZ template letter. In the letter, you should inform the provider that your right of cancellation according to Section 356 (4) of the German Civil Code (BGB) still exists and point out the legal distinction between digital content and digital services in Section 327 (2) BGB. Also, revoke the direct debit authorization so that the provider cannot continue to withdraw amounts from your account monthly.

If you used a payment service provider, log into your account, find the payment to the provider, click on it, and cancel the authorization for further payments.

Source

European Consumer Center Germany: “Beware of Subscription Traps: Streaming Services and the Right of Cancellation” (accessed June 30, 2023)

This article is a machine translation of the original German version of TECHBOOK and has been reviewed for accuracy and quality by a native speaker. For feedback, please contact us at info@techbook.de.