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Berlin (dpa) - Whether cell phone contracts, streaming or fitness studios, the federal government wants to protect consumers from rip-offs with long contract periods and difficult terminations.

Switching providers should become easier and contracts fairer.

The Bundestag is debating this today.

The federal states are already dissatisfied and would like even stricter rules.

Justice Minister Christine Lambrecht pushed the reform because she is of the opinion that consumers are being ripped off far too often.

Long contract terms for cell phone contracts, for example, often prevented people from switching to cheaper offers, she said.

The federal government wants to make this more difficult - to the chagrin of cell phone providers, streaming services, but also municipal energy providers, who believe that the federal government is interfering too much in the market.

For a long time there was a dispute between the consumer protection and economics ministries.

The federal government is now proposing this as a compromise:

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CONTRACT DURATION: Contracts, for example for the gym, Netflix or a music subscription, should generally only run for one year.

So far, two years have been the norm in many industries, so that consumers can hardly react to cheaper offers at short notice.

Such long terms should only be allowed in the future if the customer also receives an offer for a one-year contract with the same service.

This may cost a maximum of a quarter more on a monthly average.

The obligation to also offer contracts with a one-year term already exists for mobile phone and landline contracts, for example.

CONTRACT EXTENSION: Forget the termination - and you have another year on the cheek.

That shouldn't happen so easily in the future.

If a company wants to automatically extend contracts by more than three months, it must inform the customer of the possibility of termination.

For example, an SMS with the message: "If you don't cancel now, your contract will be extended by one year" is sufficient.

TERMINATION PERIOD: The notice period for consumer contracts should generally only be one month - instead of the previous three months.

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ELECTRICITY AND GAS CONTRACTS: It should no longer be possible to conclude supply contracts for electricity and gas alone on the phone.

In order for a contract to be effective, it must be available “in text form”, for example by email.

"This gives consumers the opportunity to calmly check whether they really want to change their energy supplier or their contract," said Lambrecht.

"You can also be sure that no contract will be pushed against your will."

REVIEW IN THE FEDERAL COUNCIL: The regional chamber has already discussed the draft law and called for some improvements.

For example, it requires a cancellation button on the Internet so that consumers can get rid of their contracts without having to search and write letters.

Companies should also always have to confirm receipt of a termination.

The Federal Council also wants the planned reforms to apply not only to new contracts, but also to contracts that have already been concluded, with a transition period.

The federal states do not have to agree to the reform, but the Federal Council could object to the law.

© dpa-infocom, dpa: 210226-99-600092 / 2