Commitment period and notice of cancellation period for telecommunications contracts

How the lock-in commitment period and the notice period works

It is common for telecommunications contracts to have a required notice of cancellation period. Some contracts also have a minimum commitment period. The commitment period and the notice of cancellation period are two different things.

Commitment period

The commitment period means that you are legally responsible for paying for the subscription fees for the entire duration of the commitment period or pay an early termination fee if you cancel earlier. For example, a commitment period can be for 12 months or 24 months. You have committed and are liable for the payment for the entirety of the subscription period even if, for instance, you move and the service does not work in your new home, or you may be required to pay an early termination fee.

If you would like to end the contract even though you have five months remaining on it, an example, the provider of services may require you to pay an early termination fee which may amount to the remaining five months in one lump sum.

For consumer contracts, the maximum contractual commitment period is 24 months. It is not acceptable to lock consumers into a longer contract by, for instance offering free months.

Period of notice for cancellation

Many telecommunications subscriptions have a required notice of cancellation period. A notice of cancellation period means that the contract is not terminated immediately when you submit your notice to cancel it, but rather takes effect for instance one month later. The general rule is that the notice period starts on the day after you give notice of intent to terminate the tenancy and ends one month later. You are liable for payment for the subscription for the entire notice of cancellation period.

An example: If you send in your notice to cancel on 15 January, the contract will end on 16 February. The day the provider received the notice of cancellation of the contract is not counted.

For contracts entered into on or after 1 May 2014, the maximum notice of cancellation period is one (1) month. If you entered into the contract earlier, it may have a longer notice of cancellation period.

Cancelling the contract

Companies cannot require you to terminate the contract in any one specific manner, for example by telephoning. You can choose the method that best suits you, but it is always advisable when cancelling a contract to do it in writing.

If you claim that the contract has been cancelled, you must be able to present evidence to show this. For example, you can send an e-mail with your notice of cancellation. If you send a letter by post, you should keep a copy or take a photo of the letter, and send the letter by registered post. Ask the company to send you an acknowledgement that they have received your notice of cancellation.

Make sure when you contact the company that you are clear about what you want to do, especially if you have several different subscriptions or services with the same company.

Receiving an invoice even though you have cancelled the contract

If you receive an invoice after the expiry of the contractual commitment period and the notice period, you can contest the invoice, i.e. dispute it.

When disputing an invoice, it is important that you contact the company in writing so that you have evidence that you have disputed it and not simply ignored it. For example, you can send an e-mail. If you send a letter by post, it is advisable to send it by registered post so that you have documentation you can present to prove that you have disputed the invoice. Remember to make a photocopy or take a picture.

You do not need to send a copy of the invoice with your notice that you are contesting it. If you want to send the invoice back to the company, you should send a copy and keep the original invoice for yourself.

Further information about disputing an invoice

Commitment period and what happens when the customer passes away

The demise of a person does not mean that the contract automatically disappears. On the day of demise, the person’s assets including personal belongings, their contracts, and their debts are transferred to an estate.

Some companies choose to terminate the contract immediately upon a customer’s demise, however they are under no legal obligation to do so. It may occur that there are terms and conditions in the contract that say it can be terminated in advance of its scheduled end date, however in the absence of such term or condition, it may be difficult to require the company to terminate the contract. It may therefore be that the estate is legally bound by the contract for the remainder of the term of the commitment period.

Swedish Telecom Advisors’ Code of Conduct

The Swedish Telecom Advisors is an organisation that provides free and impartial advice and assistance to consumers concerning television, telephone, and internet service subscriptions. They have also developed a Code of Conduct with their member carriers.

The Code of Conduct states, among other things, that:

“In the event of the demise of the subscriber, any period of notice of termination of the subscription shall be calculated at the latest from the date of the demise of the subscriber. Any charges for the remaining subscription commitment period shall then be waived and cancelled. The provider of services is however entitled to compensation for hardware in accordance with the contract.”

However, not all carriers are members of Swedish Telecom Advisors and consequently those are not obligated to comply with the model rules. But you might argue that the rules can be seen as generally accepted best practice in the industry and should be followed.

Read the Code of Conduct on the Swedish Telecom Advisors’ website (in Swedish)

Swedish Telecom Advisors provide advice and guidance

The Swedish Telecom Advisors provide free and impartial advice to consumers concerning subscriptions for television, telephone service, and broadband and fibre internet service based on applicable legislation and the case decisions of the National Board for Consumer Disputes.

After an initial complaint being filed, in most cases Swedish Telecom Advisors can assist in facilitating the dialogue between you and the provider of the services via a mediation-like procedure, with the goal of trying to find a resolution to the situation. The Swedish Telecom Advisors’ Rules of Conduct go beyond existing consumer legislation and may therefore be important to you if you end up in a dispute with a mobile phone, Internet or other provider.

The Swedish Telecom Advisers (in Swedish)

The National Board for Consumer Disputes (ARN)

If you have a dispute with a provider of services that is not a member of Swedish Telecom Advisors, you can file a complaint with the National Board for Consumer Disputes (ARN). ARN will assess your case and make a recommendation on how to resolve the dispute. There is no charge for having your case heard by ARN. The average processing time is about 6 months.

When you submit your complaint, you will need to describe the situation and exactly what you want from the company. You can send supporting documents such as e-mails, pictures, screenshots, contracts and other evidence.

Requirements for the National Board for Consumer Disputes to be able to review your case:

• You have filed a complaint within one year from the date you first notified the company of the problem.

• The amount you and the company are in dispute about is SEK 500 or more (different value thresholds apply for different fields).

• The company has rejected your requests in whole or in part, or it has failed to respond to you within 30 days.

Submit an application on ARN’s website