The amendment of the Dutch Civil Code, regarding the (tacit) extension of agreements

    The amendment of the Dutch Civil Code, regarding the (tacit) extension of agreements.

If your company provides/delivers subscription based services or products to consumers, the proposed amendment of the Dutch Civil Code regarding tacit renewal and notice of memberships, subscriptions and other agreements (in short: “the van Dam regulation”) may affect your current agreements and general conditions. This act gives customers the right to terminate most agreements on a month’s notice.  As of December 1, 2011, the following rules take effect on future agreements.

The following terms will be added to the “blacklist for terms and Conditions” of the Dutch Civil Code. (These conditions are considered unfair and can be terminated)

■ Agreements may not be automatically renewed longer than the duration of one (1) year, unless the consumer has the possibility to terminate the agreement with a notice period of one month. Effectively this means that agreement can be prolonged with a maximum tacit extension of one (1) month.

■ It is no longer allowed to define the moment of termination, the customer can make a request for termination of the agreement on every moment during the month, after which the notice period will start.  

■ If a supplier of goods/services uses a website or another channel to enter into agreements with consumers, it must also be possible for the consumer to terminate the agreement trough the same channel.

■ A tacit renewal of a subscription on the delivery of newspapers, magazines and periodicals may not exceed three months. Consumers have the right to cancel the agreement at the end of the second month of the extension.

■ Trial subscriptions of newspapers, magazines and journals can no longer be extended automatically after the end of the trail period, but should lead to a new ‘separate’ agreement after the end of the trial period.

■ In case of trial subscriptions in other cases (e.g.  weekly/monthly sending of beauty products or a pay site), agreements can be terminated after the initial tacit renewal, on a month’s notice, whereby the start of the notice period can be set by the consumer.

The following rules will be added to the “Gray list of the Dutch Civil Code” (terms which are considered to be unfair and can be terminated, the burden of proof hereby falls upon the supplier of goods/services

■ without good reason a supplier should not conclude an agreement with a duration longer than one (1) year, unless the consumer may cancel the agreement on one (1) months notice.

■ without good reason, a supplier of goods/articles is not entitled to impose a notice period longer than the notice period supplier uses. So if according to the terms and conditions a notice period of two weeks is applicable, the supplier of good/services can not impose a notice period of one (1) month on the consumer.

Effective date of “the van Dam Regulation”
For new agreements, the amendment shall enter into force on December 1, 2011. If the amendment will be applicable for existing agreements is yet to be decided by pending discussion in the senate.

     For more information please contact:

    Matthias Vroegh

    Legal Officer