Dutch ACM Drafts Policy Rule on Telecom Contract Expiration and Best-Rate Notices

Key Takeaways

• The Netherlands Authority for Consumers and Markets (ACM) has issued a draft policy rule clarifying how telecom providers must notify customers about expiring contracts, free termination rights, and cheaper rates.
• The rule targets loyalty penalties and sets specific requirements for timing, format, and content.
• Providers should assess their current communications now, as consultation closes 27 October 2026 and a final rule is expected before year-end.

Deep Dive

The Netherlands Authority for Consumers and Markets (ACM) has issued a draft policy rule clarifying how telecom providers must notify customers about expiring contracts, free termination rights, and cheaper rates. The rule targets loyalty penalties and sets specific requirements for timing, format, and content. Providers should assess their current communications now, as consultation closes 27 October 2026 and a final rule is expected before year-end.

The key requirements concern timing, format, and content. The message must be sent no later than one month and no earlier than three months before the initial contract term ends. It must go on a durable ("sustainable") carrier, and a reference to a website is not sufficient. It must also be recognizable as a separate message, not embedded in an invoice or advertising email. Content must include the contract end date, a statement that the customer can terminate free of charge from that date, and clear instructions for canceling or choosing a new subscription. The message must be personalized: the current price structure with costs per service itemized, an explicit flag for any cheaper alternative in the provider's offer, an at-a-glance comparison of options, and transparent disclosure of temporary discounts and combination benefits so total costs over the contract duration are clear.

ACM also published a sample letter. Providers that use it will in any case be considered to sufficiently comply with the information obligation, which offers a practical safe harbor. Departing from the template is permitted but places the burden on the provider to demonstrate that every policy rule element is met. ACM retains authority to take enforcement action for unsatisfactory or absent compliance.

Key timelines: stakeholder responses are due by 27 October 2026, and the final rule is expected before the end of 2026. Recommended actions: (1) map current notification workflows against the draft, covering timing windows, channels, and templates; (2) assess whether billing and CRM systems can generate personalized, itemized, multi-year cost comparisons and identify cheaper in-house alternatives; (3) evaluate adopting the sample letter versus a customized version, with documented rationale; (4) separate these notices from invoices and marketing communications; (5) establish controls and audit trails evidencing delivery dates and content; (6) consider submitting consultation feedback, particularly on operational feasibility.

Risk implications are moderate to high for consumer-facing telecom providers. Exposure includes enforcement action, remediation costs, reputational harm tied to the loyalty-penalty narrative, and potential customer attrition once savings are made visible. Operational risk is significant because personalization and timing precision require data quality and automation, especially for large legacy subscriber bases with long-standing, higher-priced plans.

Source: Netherlands Authority for Consumers and Markets