"Free trial" must be free of charge

A provider advertising "Try for free now", "Free download", "2GB/14 days for testing... for EUR 0.00" but simultaneously imposing on the user an automatic chargeable contract extension in its terms and conditions without clearly stating a price acts in breach of competition law. The Regional Court (LG) Berlin established this in a ruling.

There are a multitude of offerings on the Internet, many of which are also free of charge. In order to nevertheless access the money of users, an increasingly common practice is to advertise a free offering with which the consumer is supposed to enter into further obligations that then oblige him or her to make a payment to the operator.

In the case heard before the Regional Court (LG) Berlin (judgement of 28.11.2007 – Az. 96 O 175/07), a provider had advertised free offerings. Should users take up this time-limited or limited-in-scope offering and not cancel, they were to conclude a contract with a minimum term of 6 months according to the operator's terms and conditions. References to this, as well as information on the price, could only be found in the terms and conditions.

A consumer protection association opposed this, amongst other arguments on the grounds that price information does not belong in the terms and conditions and that disclosure exclusively there is in breach of competition law. The Berlin judges also recognised this violation of the Price Indication Ordinance (Preisangabenverordnung) and ordered the operator to cease and desist.

Conclusion

Consumers should exercise caution with free offerings on the Internet, as it is not uncommon for attempts to be made to turn the apparently free offering into a chargeable one through hidden clauses. Should one be called upon to make corresponding payments by operators, debt collection companies or attorneys based on such offerings, it is advisable to seek legal advice, as the claims are usually untenable. Most legal expenses insurance policies will moreover cover the costs for this.