Brussels, 10/07/2015 (Agence Europe) - Consumers cannot terminate a telecoms contract because of a rise in prices if a price indexing is foreseen in the contract and if they have been notified about the rise, which must be predictable, transparent and ensure legal security.
These were the conclusions unveiled by European Court of Justice Advocate General Pedro Cruz Villálon on Thursday 9 July in case C-326/14, on which an Austrian court wants to know whether the special right to cancel a contract foreseen under EU Directive 2002/22/EC on universal service and user's rights in respect of electronic communications networks and services (known as the 'universal service directive') can be invoked by subscribers when there is a price rise but the contract stated when signed that changes in prices (whether up or down) may occur in the future in line with an objective index of consumer prices.
If such an adjustment in prices is included in the contract, then this is not a contractual change such as would give the special right to cancel the contract, concluded the judge. He added, however, that it is for the legal system in the member states to ensure the following three points. Firstly, that the price changes foreseen in the contract ensure the continuation of the initial balance of commitments made and the equivalence of reciprocal benefits in the contract. Secondly, that the price variation be clear, detailed, understandable and transparent for subscribers. And thirdly, the absence of any automatic indexing clause must work in favour of the subscriber while maintaining a balance between the contractual parties' interests. (Jan Kordys)