Consumer protection warns of subscription traps for streaming services

Booked a month of streaming service but got a whole year? Sounds like a good deal, but it’s not when you’re supposed to be paying for the year. What to look out for when purchasing a streaming subscription

Streaming service subscriptions can be revoked as a digital service within fourteen days without giving reasons. However, the European Consumer Center in Germany (EVZ) warns that there are providers who restrict this right in their general terms and conditions. Even if they are wrong, you should avoid such streaming providers to avoid trouble with subscription traps. So always read the terms of use carefully beforehand.

Dubious providers want to avoid the right of withdrawal

According to consumer advocates, there are only exceptions to the two-week right of withdrawal for digital content that can be downloaded for a fee and used immediately: i.e. individual e-books, music or video files. Here the right of revocation could expire prematurely with the download.

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

Also interesting: You should rather keep your hands off these streaming providers!

Streaming services lure customers into subscription traps

Cases are known in which consumers only wanted to take out a monthly subscription to a streaming service in another EU country, but then received confirmation of annual membership by email.

When trying to revoke the contract, the providers refused with reference to their terms of use: the fulfillment of the contract allegedly began immediately after the subscription and the right of revocation expired immediately.

What Affected Consumers Can Do

Cancel the contract immediately, for example using the EVZ sample letter. In the letter, you should inform the provider that your right of withdrawal according to Section 356 Para. 4 BGB still applies and point out the legal distinction between digital content and digital services in Section 327 Para. 2 BGB. Also revoke the direct debit authorization so that the provider cannot continue to debit amounts from the account every month.

If you used a payment processor, log into your account, find the payment to the provider, click on it and deauthorize further payments.

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