How to Avoid Subscription Traps Online

Key points

• Always check costs before signing up
• Be cautious with “free” offers
• Watch out for hidden subscriptions and automatic renewals
• Use your 14-day withdrawal right
• Do not panic if you receive a payment request

What is a Subscription Trap?

A subscription trap is an online offer that appears free or low-cost but actually leads to a paid subscription.
Under EU law, online retailers are required to provide consumers with clear and unambiguous information about the costs before a contract is concluded.

For example:

• Order buttons must clearly indicate a payment obligation (e.g. “order with obligation to pay”)
• Pricing, duration, and cancellation terms must be transparent

If these requirements are not met, the contract is generally not legally binding.

How to Recognise Subscription Scams

Be cautious if you notice the following warning signs:

• Missing or incomplete contact details (no address, email, or phone number)
• Hidden costs or unclear pricing
• Very attractive “free” offers requiring payment details
• Automatically renewing subscriptions
• Pressure tactics (e.g. countdown timers)

Modern scams often use so-called dark patterns. These are website designs intended to encourage users to make a purchase or take out a subscription.

How to Protect Yourself From Subscription Traps

Check the provider

Get to know the operator before subscribing. Take a look at:

• Legal notice: Have a look at the contact details displayed on the website.
• Verified contact details: If you do not find a postal address, a telephone number or an email address, you should be suspicious.
• Independent Reviews: Search on the internet about other people’s experiences with the same company. However, even if there are no negative reports, it does not always mean that everything is above board; on the other hand, a negative report does not always reveal a lack of seriousness.

Read the General Terms and Conditions carefully

The effective costs of the offer and additional information about the offer should be displayed in this. Always check:

• Total Price
• Subscription duration
• Renewal conditions
• Cancellation terms

Compare alternatives from different suppliers

Many services can be found free of charge on the internet, without providing any personal data.

Protect your personal data

Be sure to share only personal informations when they are necessary. During the registration process on certain websites, Internet users are asked for their personal data, such as their name or address. Always check the terms and conditions before, in order to verify if it is really worth giving such information.

Under the General Data Protection Regulation (GDPR), companies must clearly explain:

• how your data is used
• whether it is shared with third parties

What to Do if You Fall Into a Subscription Trap

If you discover a bill in your mailbox or receive an order to pay, the most important thing is to stay calm. Generally speaking, all the provider intends is to intimidate consumers into paying out of fear that the costs will increase or that there will be legal proceedings.

Check, if the contract is valid

It is usually invalid if:

• costs were not clearly displayed
• the payment obligation button was missing or unclear

Contact us directly for further legal advice.

Use your right of withdrawal

Even if a subscription has been signed, this does not necessarily mean that the consumer is immediately bound by the contract.

Indeed, thanks to the European law, consumers have the possibility to withdraw from the contract within 14 days. The two-week period only begins once the consumer receives clear and complete information concerning his right of withdrawal.

The consumer must withdraw by a written form sent to the operator (Email, letter or fax…). You may also exercise your right to withdraw orally, however, in case of litigation, oral statements are difficult to prove and often don’t hold up in court.

You need advice?

If in doubt, please contact the ECC Germany. We offer free legal advice.

Subscription Traps and Minors

In general, minors cannot conclude contracts with professionals if the parents haven’t given their consent for a long-term subscription. Even if the teenager pretended to be of full age, their real age is taken into account and thus the contract is legally void. Parents must approve the contract for it to be valid.

What if You Receive a Court Order for Payment (Mahnbescheid)?

You need to react immediately. An order to pay is issued by a court.

This order consists of a form, filled in by the opposing party; you should keep in mind the particularities of the German “order to pay”, i.e. that a law enforcement officer has only verified if the form was filled in correctly and if such a claim could exist, but not if the alleged claim is legitimate.

Once you receive the order to pay, you generally have 14 days to file an objection by using the form you received with the order to pay. The trader then has the option to drop the matter or to start a legal procedure against you.

If you fail to object to an order to pay, the claim is considered to be legitimate.

Free Trials and Automatic Renewals

Be especially careful with free trial offers. It is important to know what happens after the trial period ends. In many cases, you have to cancel the subscription yourself. Otherwise the subscription will be automatically renewed into a paid plan.

Good to know: Since 2022, companies in Germany must provide an easy-to-use online cancellation button (“Kündigungsbutton”) for ongoing contracts.

Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Innovation Council and Small and Medium-sized Enterprises Executive Agency (EISMEA). Neither the European Union nor the granting authority can be held responsible for them.