Dutch ACM Consults on Telecom Policy Rule for End-of-Contract and Cheapest Tariff Notices

Key Takeaways

• The Netherlands Authority for Consumers and Markets (ACM) has issued a consultation draft policy rule setting out when telecom providers will be treated as having met their information obligations under Article 7.2ab of the Telecommunications Act.
• Providers that follow the rule, particularly the Annex template, will in any case be considered compliant.
• This gives compliance teams a practical safe harbor and signals enforcement focus on passive-contract customers and loyalty-based price discrimination.

Deep Dive

The Netherlands Authority for Consumers and Markets (ACM) has issued a consultation draft policy rule setting out when telecom providers will be treated as having met their information obligations under Article 7.2ab of the Telecommunications Act. Providers that follow the rule, particularly the Annex template, will in any case be considered compliant. This gives compliance teams a practical safe harbor and signals enforcement focus on passive-contract customers and loyalty-based price discrimination.

Key requirements under Article 2 are that the notice:
- is sent between one and three months before the initial term ends;
- is on a durable medium (post or email; a web link alone does not qualify);
- is a separate, clearly recognizable communication, not embedded in invoices or advertising;
- is clear, unambiguous, and objective;
- is personalized to the customer's contract and current subscription; and
- is presented so that options can be compared at a glance.

Article 3 requires the notice to state the expiry date, the right to terminate free of charge and how to exercise it, the option of a new subscription, and the fact that the contract renews tacitly and can then be canceled monthly. Article 4 requires an itemized price breakdown of the current subscription, notice if the current plan is available at a lower rate, and an overview of the cheapest alternative for each service. For tacitly renewed contracts, the same standards apply to the annual cheapest-tariff notice (Article 2, paragraph 2). The Annex template is deemed sufficient under Article 5. It includes a definition of "cheaper alternative" based on total cost over the initial term. It also requires a prominent warning if the alternative's price after discounts expire exceeds the current monthly price.

The rule takes effect the day after publication in the Government Gazette, with no transition period in the draft. The policy rule is not binding law, but the ACM states it may take enforcement action against non-compliant providers. Compliance teams should:
- gap-assess current notices against Articles 2 through 4 and the Annex;
- verify timing logic, including the one-to-three-month window, and confirm that notices are sent on a durable medium;
- confirm that billing and CRM systems can generate personalized, itemized pricing and identify the cheapest like-for-like and basic alternatives;
- establish an annual notice process for tacitly renewed customers; and
- consider submitting consultation comments, for example on operational feasibility, the three-month limit, and the definition of "cheaper alternative."

Risk implications are significant for providers with large legacy or loyal customer bases. These providers face regulatory scrutiny, enforcement, and reputational harm tied to price discrimination. Deviating from the Annex is permitted but increases the burden of showing compliance, so documenting the rationale and testing communications are advisable. Operational risk includes data quality, system changes, and the volume of customer communications.

Source: Netherlands Authority for Consumers and Markets