Particle.news

German Court Bans One-Month Exit Clause in 'Unlimited' Mobile Contracts

The Bamberg appellate court found that allowing providers to cut off unlimited tariffs with one month’s notice unreasonably shifts risk onto consumers and keeps national consumer-law review in force.

Overview

  • The Oberlandesgericht Bamberg ruled Thursday that a clause letting a provider end certain 'Unlimited' mobile contracts with one month’s notice is unlawful and must not be used.
  • The case was brought by Verbraucherzentrale Hamburg after it warned the operator and sued when the company refused to stop using the clause.
  • The court said the clause unfairly disadvantaged consumers because customers remained bound to agreed minimum terms while the provider could exit at will.
  • The judges rejected Telefónica/O2’s defenses, including the claim that early termination could benefit customers, and held that the EU Electronic Communications Code does not bar German review of unfair contract terms.
  • The decision is final at the appellate level since the court denied leave to appeal, creating immediate pressure on telecom firms to remove similar terms and raising the chance of further national litigation or regulatory scrutiny.