New rules on automatically renewing subscriptions

A new bill will require companies to inform their customers when their subscriptions are automatically coming up for renewal, aiming to prevent consumers from continuing to pay for subscriptions that they no longer need.

Many people subscribe to services they do not end up needing or would like to stop using – from gyms and newspapers to apps and club memberships – but then forget to cancel before being charged for the next period.

Minister for consumer protection Rob Beenders (Vooruit) introduced a bill obliging companies that automatically renew subscriptions to notify their customers in advance, RTBF reports.

“Belgium is a pioneer in Europe in implementing a measure of this magnitude,” said Beenders.

“This is an important step in protecting our purchasing power.”

In practical terms, companies will be required to notify their customers of the renewal of their subscription 15 days before the deadline for contesting the renewal. This information must be communicated by post, email or text message.

“According to European studies, between 60 and 70% of consumers have difficulties cancelling a subscription under the tacit renewal process,” says Jean-Philippe Ducart, spokesperson for Belgian consumer protection organisation Test-Achats.

The new measure would apply to both annual and monthly subscriptions and the notice communication must allow consumers to cancel their subscription directly. In an email, this could be a direct link that redirects customers to a cancellation form.

The measure will also apply to foreign companies, including streaming platforms such as Netflix and Amazon Prime, although it remains to be seen whether the giant American corporations will comply.

“It’s clear that the measure proposed by the government today is a small one, but it is clear that it would be preferable to have measures at European level, harmonised measures, given that many subscriptions come from foreign companies or even companies located outside the European Union,” said Ducart.

The bill was approved by the council of ministers at its last meeting, but it still has to pass through several stages.

Test-Achats welcomed the measure but remains cautious about when it will come into force.

If the bill passes, it would take a year after its publication in the Belgian Official Journal for it to actually come into force, allowing companies to adapt their communications to customers.