New law for fair consumer contracts

The Federal Ministry of Justice has presented a draft bill that is intended to further improve the legal position of consumers vis-à-vis companies and which is also intended to ensure that not only the conclusion of contracts takes place under fairer conditions, but also that the contractual terms are subject to more balanced regulations.

The draft bill provides for the following measures, among others:

• In future, prohibitions on the assignment of monetary claims contained in general terms and conditions of business are to be invalid.
• Only shorter initial terms and automatic contract extensions can be regulated by general terms and conditions.
• A confirmation solution is introduced for distance contracts for energy supplies concluded by telephone, i.e. consumers must confirm gas and electricity supply contracts in writing or by e-mail after the contracts have been made available on a data carrier.
• Entrepreneurs will be required to document and retain consumers’ consent to telephone advertising. This is intended to combat unauthorized telephone advertising more strongly.

Professionals and associations have the opportunity to comment on the draft bill until February 24, 2020.

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