What was the problem?
The client is preparing to implement a digital service where, in return for a subscription fee, the user receives a number of additional benefits when using the client’s services. However, the client was faced with the question of whether the user would be able to effectively cancel the contract (as with standard online purchases) once the subscription had been purchased and, if so, how to account for the subscription price. Services most often cannot be ‘returned’, unlike goods. At an earlier stage of the project, the client had developed a concept for how to approach the problem, but this presented a major operational challenge (individual, manual billing for each user).
How did we help the client?
We carried out a broader analysis of the EU regulations that give rise to the right to withdraw from online contracts with consumers. We also researched the case law of the EU courts. We developed a set of measures to implement into the purchasing process, as well as a simple method to settle the price with users who cancelled their subscription within the statutory 14-day period.
What did the client gain?
The client avoided the risks associated with implementing unlawful cancellation and subscription billing procedures with users. This is because one of the concepts previously developed internally could have raised questions in terms of compliance with consumer protection legislation. The client gained a relatively simple and practically automated method of accounting for cancellations, which could have been used in the future.
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