11.05.2018

ANCOM draws the attention of the telephony, internet or television services users in Romania on the fact that withdrawing, during the minimum contractual period, from a contract concluded with the electronic communications services providers, usually involves the payment of penalties. "The users believe that if they switch operators, they will no longer have to pay early termination fees. Regardless of the reasons for giving up service, the users have to read the contract terms and make sure the minimum contract period has ended, so as to avoid the risk of incurring early termination charges.” said Sorin Grindeanu, president of ANCOM.

The minimum contract periods stipulated by electronic communications providers cannot exceed 24 months, but these providers must also offer contracts with a minimum contract period of up to 12 months. After the expiry of the minimum contract period, the contract will continue for an indefinite period or will be extended successively, for periods equal to the minimum contract period.

Minimum contract period

According to the legal provisions, providers of telephony, internet and television services may set a minimum contract period, also called the initial contract period in the case of contracts for the provision of electronic communications services. Withdrawal from the contract during this minimum contract period generally entails the payment of early termination fees. This is not applicable to situations when users request the contract termination as a result of the provider’s unilaterally changing the contract. According to each provider’s commercial strategy, offers can be launched based on contracts concluded for an indefinite period (without a minimum contract period), usually at standard prices (no benefits or discounts), the users being able to withdraw from such a contract at any moment, without the payment of early termination fees. 

Total contract duration

The total duration of the contract is different from the minimum contract period. ANCOM's analysis of the contracts proposed by the main providers of electronic communications services in Romania revealed that after the expiry of the minimum contract period, the contract does not cease; it continues for an indefinite period or it is successively extended for periods of time equal to the minimum contract period - depending on the specific contract provisions and on the subscribers' requests. In this case, upon the expiry of the minimum initial period, a user does not need to contract a new offer in order to extend the contract duration, the current offer being still available. Furthermore, after the minimum initial period has expired, users can withdraw from the contract without paying early termination fees.

Useful info

• According to the law, there is a maximum threshold for establishing the initial contract period: 24 months; providers must make available to users also offers with an initial contract period of maximum 12 months;
• Some providers also offer the possibility to conclude contracts for an indefinite period, in which case users may request their termination without having to pay early termination fees;
• The minimum contract period for contracts concluded with business users may exceed 24 months, being usually negotiated by the parties. However, such users may require the application of the regime for residential users, i.e. the possibility of concluding a contract for a minimum contract period of up to 24 months;
• Setting out - by contract - amounts of money which a user has to pay if he/she wishes to terminate the contract before the expiry of the minimum contract period is not forbidden, but the manner in which these amounts are set must comply with the consumer protection legislation;
• Users wishing to terminate an electronic communications service contract should check (in their contracts) whether the minimum contract period has expired and the amounts they would have to pay for the contract termination if their minimum contract period is still running;

Warning!

Porting your telephone number does not waive your obligation to pay early termination fees, if the porting process takes place before the expiry of the minimum contract period.

About what, how and where one can complain?

• If a user intends to complain about the manner in which an electronic communications provider has set the amounts charged as early termination fees, he/she can address the National Consumer Protection Authority (ANPC), the institution enabled to assess abusive clauses in contracts.
• If an electronic communications services contract does not contain any indication as to its duration or - in the case of residential users - an initial contract period of more than 24 months is provided, or such users are not given the possibility to conclude a contract with an initial period of up to 12 months, the users may contact ANCOM following the steps outlined in section Complain to ANCOM. Moreover, business users that have been denied the possibility of concluding, upon request, contracts with a maximum contract period of 24 months, or the possibility to conclude a contract with a maximum contract period of 12 months may complain to ANCOM.

Interested parties can find further information in the InfoCentre section on the Authority's website, www.ancom.org.ro, subsection A to Z contract issues.