Tom Ewart Smith
SPAIN is set to introduce new legislation requiring companies to give consumers 15 days’ notice before automatically renewing their contracts.
This reform, currently under parliamentary review, is part of the Customer Service Law, which aims to provide better transparency and protections for consumers.
The law focuses on fixed-term contracts for services such as streaming platforms, apps, and other online subscriptions.
Under the new regulations, businesses will be required to inform customers in advance when a contract is about to renew automatically.
If consumers wish to cancel, they must do so within this notice period to avoid the renewal.
If no action is taken, the contract will continue as agreed.
“This measure is designed primarily to avoid automatic renewals of subscriptions to applications that the consumer has even forgotten they were subscribed to,” said government sources.
The law is intended to ensure that customers are informed about the renewal of their subscriptions ‘with enough time to make a conscious decision’ about whether to continue or cancel, providing them with an opportunity to manage their subscriptions more effectively.
“The absence of this prior communication leads to the systematic renewal of unwanted services,” explained the Ministry of Consumption.
The introduction of this law is part of a broader effort to improve consumer rights and create a more transparent relationship between businesses and their customers.
By ensuring that consumers have adequate time to make decisions about their subscriptions, the government hopes to reduce complaints about automatic renewals and give people better control over their digital purchases.
Once approved, this regulation will require companies to adjust their subscription policies, with penalties for failing to comply.
