The amendments to the Electronic Communications Law entered into force on 16 August 2016, which seek to reinforce the protection of communications consumers who opt to enter into contracts with binding periods. Operators are required to ensure compliance with the new rules, including:
- Transparency of information as regards the advantages which warrant application of binding periods.
Operators shall make available, in a durable medium, information identifying and quantifying the benefits given to consumers to justify a binding period. These advantages can be associated with the subsidisation of equipment, installation and service activation, or with other promotional terms.
- Range of options for length of contract
Operators shall offer all users the ability to enter into non-binding contracts for each offer made available offering binding contracts, and publish them in the same format where the offer with a binding contract is advertised.
Any binding period has a maximum duration of 24 months. When offers with binding periods are made available, operators should also make it possible for users to enter into contracts with 6 and 12 month binding periods.
In all offers with binding periods operators should publish, in a way accessible to consumers, the cost and benefit relationship linking to the available commercial offerings.
In cases where contractual amendments imply the updating of equipment practice or the technological infrastructure, contracts may, exceptionally, establish additional binding periods up to a limit of 24 months following the consumer’s explicit acceptance.
- Proportion of the charges to be paid by the subscriber in the event of early termination of a contract with a binding period.
The charges to subscribers resulting from early termination on their own initiative should be proportionate to the benefit which was granted to them (identified and quantified in the contract), and must not exceed the costs that the operators had in installing the service, and the levying of any charge for indemnity or compensatory amount is prohibited. Accordingly, these charges may not automatically correspond to the sum of the amount of instalments due on the date of the termination of the contract.
- Guarantee of consumer rights in the event of contract termination
Operators can not oppose termination on the basis of the subscriber’s binding period or demand any charges for breach of the binding period if they do not have proof that the consumer has given their written consent to establishing the binding period.
The obligations set out in the law apply to contracts entered into after 16 August or amendments to contracts previously entered into, which are made after that date.
Consult:
- Law no. 15/2016, of 17 June https://www.anacom.pt/render.jsp?contentId=1389603
- Portal do Consumidor: perguntas frequentes sobre períodos de fidelização https://anacom-consumidor.pt/pergunte-anacom?0.8904344568806892#_48_INSTANCE_SP52PIfTru64_=http://anacom-consumidor.inbenta.com/?c=79
Related information on ANACOM's website:
- New rules on contract lock-in periods https://www.anacom.pt/render.jsp?contentId=1390887
