Consumers and subscriptions: a difficult combination

Subscriptions are an attractive revenue model for entrepreneurs, but cancellation rules for consumers are strict: a subscription without an end date (or an automatically renewed subscription) can always be cancelled with a maximum notice period of one month, and cancellation must be just as easy as signing up. Those who do not draft subscription terms properly face invalid clauses and penalties. Below, you will find the most important rules per subscription type.

Subscriptions are long-term agreements

A subscription is a long-term agreement: you continuously provide a service or product, and the customer pays periodically. Streaming services, dating sites, and gyms do not choose this option for nothing: it generates a stable revenue stream. There are roughly two forms, each with its own cancellation rules: subscriptions with a fixed term and subscriptions without an end date.

Cancellation during a fixed term

In principle, a subscription with a fixed term cannot be cancelled prematurely; it continues until the end date. Termination during the term is only possible if agreed upon (for example, in the general terms and conditions) or through dissolution, for example, if you, as an entrepreneur, fail to comply with the agreements.

After the fixed term, a subscription may be tacitly renewed — but only if this has been agreed in advance and the customer can easily cancel it afterwards. Important: for consumers, a tacitly renewed subscription converts into a subscription that can be cancelled at any time with a maximum notice period of one month. Special rules apply to newspapers, magazines, and trial subscriptions; a trial subscription to a newspaper, for example, may not automatically continue and must expire after the agreed period.

Canceling a subscription without an end date

A subscription without an end date can always be cancelled. The statutory notice period is a maximum of one month. This also applies after a fixed-term subscription has been tacitly renewed and has thereby become a subscription without an end date.

One exception: for subscriptions to magazines published less than once a month, the notice period may be contractually extended to a maximum of three months. You stipulate this in a termination clause.

How can a consumer cancel?

The main rule: a customer may cancel in the same way they took out the subscription. Taken out online? Then online cancellation must be possible. Taken out by phone? Then it must also be cancellable by phone. You may therefore not make cancellation unnecessarily difficult — think of a clear cancellation option that is just as accessible as the sign-up button.

The precise rules regarding notice periods and the method of cancellation may change; check the current consumer rules with official sources.

Frequently asked questions about subscriptions and cancellation

Can I automatically renew a subscription by a year?

Not so easily for consumers. After the initial fixed term, an tacitly renewed subscription must be cancellable at any time with a maximum notice period of one month. A fixed renewal of a full year without that cancellation option does not hold up with consumers.

Do these rules also apply between entrepreneurs (B2B)?

In principle, strict consumer regulations do not apply between entrepreneurs. In B2B relationships, there is more contractual freedom, meaning longer terms and extensions are permitted more frequently. Nevertheless, it pays to draft the terms carefully in this context as well.

Do the same cancellation rules apply to a gym and a sports club?

No. A gym membership is a commercial subscription to which consumer regulations apply. In the case of a sports club, it concerns a membership, for which the articles of association generally determine how and when cancellation is possible. That distinction is important for the method of cancellation.

Have subscription and cancellation terms drafted

Subscription cancellation rules are surprisingly complex and vary by situation. Incorrect terms and conditions are not only invalid but can also lead to enforcement action. The legal experts at MKB Juristen draft clear, legally valid subscription and cancellation terms and conditions that align with your business model and the law. View our expertise in contract law or schedule a no-obligation intake.