Latest News
Belgium is set to break the subscribe-forget-pay-cycle of tacit subscription renewals in a move to better protect consumers. A new law will require companies trading in Belgium to notify their customers 15 days before their subscription renews.
The digital subscription economy is worth billions – and is predicted to grow further – and has exploded in recent years across markets such as streaming services, food, clothing, and beauty products.
It drives consumers away from a one-time purchase towards ongoing access to products and services for a recurring fee. According to Bango, a subscription bundling platform subscriptions, EU consumers spent an average of €696 on subscriptions last year.
“You see money being transferred from your account every month to pay for something that you don’t need. In future, companies will have to notify their customers when their subscription is going to be renewed. This will give customers time to cancel their subscription if it is no longer required”, Belgian Federal Minister of Consumer Protection Rob Beenders said, adding that “this makes us pioneers in Europe.”
A draft law was approved at the government’s last council of ministers before the summer recession and requires companies to inform consumers about upcoming charges at least 15 days before the deadline to cancel.
It also requires that the message is sent in an accessible format, like a letter, email or text, and is understandable and unambiguous about the terms of the contract and cancellation procedure.
Companies have 12 months to adapt to the regulation before it is published in the Belgian Official Gazette and takes effect. Companies risk fines should they not comply with the new rules.
(vib)
Viral News
Source link
