TERMINATİON OF SUBSCRIPTION AGREEMENTS AND ITS CONSEQUENCES 17 June 2021

I.             General Concept of Subscription Agreements

Subscription contracts ensure that the consumer receives a certain service or good on a continuous or regular basis as determined in the contract. Today, subscription agreements are mostly seen in internet, telephone and newspaper subscriptions. Subscription agreements are mainly examined within the scope of the Law on Consumer Protection and the Ordinacne on Subscription Agreements in Turkish legal legislation. The Law on Consumer Protection also adopts a definition in parallel with the above explanation. According to the the law, subscription contracts are “agreements that enable the consumer to obtain a certain good or service continuously or in regular intervals”.

In accordance with the Consumer's Law, subscription contracts can be concluded in writing or as a distance contract. No matter how it is established, a copy of the contract must be given to the consumer on paper or with a permanent data storage. The termination of subscription agreements by consumers will be possible in the absence of the mandatory elements specified in Article 6 of the Ordinance on the Subscription Agreements. According to this; the consumer’s and the seller’s or supplier’s name, title, full address, telephone and MERSIS number and other contact information; the subject of the contract and if any, its duration;if any, the date of conclusion of the contract, the first delivery date of the goods or the start date of the service; the total price of the goods or services including all taxes;in case the contractual goods or services are calculated over a tariff, the name of the tariff chosen by the consumer, its content, the unit consumption price on the conclusion date of the contract, information about the consumption period, the termination of the contract and its results; the provisions and results regarding the devices to be used within the scope of the performance of the obligations arising from the contract. Apart from these, other mandatory elements are specified in article 6 of the regulation. The absence of these mandatory elements will not automatically lead to the invalidity of the contract. If the missing elements are not completed by the seller or service provider, in this case, the consumer will be able to terminate the contract.

Article 5 of the regulation includes the form conditions of the contract. Although the violation of the form conditions does not completely invalidate the contract, the contractual terms that may harm the consumer and do not meet the mentioned conditions will be deemed invalid within the scope of the unfair conditions determined in the Consumer Law. In this regard, it will not be legally possible for the service provider to claim that the remaining articles of the contract will not be accepted due to the invalid articles.

It is forbidden to include clauses in the contract that determine the spontaneous extension of subscription contracts. The subscription agreement will only be possible with the consent or request of the consumer. In case the contract is automatically extended, it will not be possible for the service provider to demand a price for the contracted service or goods.

II.           Termination of Subscription Agreements

The important point for the termination of the subscription agreement is whether the contract is for a definite or indefinite period. Another important issue is that the seller or service provider will not be able to determine a more difficult procedure for the termination of the contract than procedure for the conclusion of the contract. Accordingly, the seller or service provider is also responsible for taking the necessary measures, establishing necessary the systems and keeping them operational in case the contract is terminated.

a)           Termination of Definite Term Subscription Agreements

Promissory subscription agreements can be evaluated in this context. The consumer's commitment to remain a subscriber for a period determined in the contract is considered within the scope of fixed-term subscription contracts.

If the contract stipulates a subscription for one year or longer, the consumer may use the right to terminate the contract at any time without obligation to give any excuse and without being subject to any penal clauses. However, if the contract is for less than one year, the consumer can only terminate the contract if the service provider or seller changes the terms of the contract or if there is a situation that prevents the consumer from benefiting from the service or the good.

In promissory subscriptions, there are some regulations regarding the compensation that the consumer will face in cases where he wants to terminate the contract. According to this; the maximum amount that can be requested from the consumer must be equal to the total price of the discount made from the non-promissory subscription price, the device price and the unpaid invoices due to there is a promissory subscribtion. In addition, if the total price that has not yet been paid within the promissory period is lower than the price stated above, the lower price in favor of the consumer is paid. The consumer has the right to terminate without any sort of compensation in case the said service cannot be provided at the consumer's new address or the goods are not offered in accordance with the required standards.

Different periods have been stipulated in the ordinance regarding the fulfillment of the termination request. Pursuant to Article 24 of the Regulation; “The duration of the consumer's request for termination is fifteen days in daily publications; a month in weekly publications; for monthly publications, it is three months. For longer publications, the notice of termination shall prevail after the first publication after the notification.

b)           Termination of Indefinite Subscription Agreements

The consumer has the right to terminate indefinite subscription contracts without being bound by any penal clause or justification. The notice of termination must be made on paper or through the permanent data provider, and the notice must be directed to the service provider or the seller. Pursuant to the provisions of the Regulation, it is obligatory for the seller or service provider to establish a telephone system with the necessary records for the consumer. With these registered phones, the consumer will be able to make the termination notice.

The seller or the service provider has to fulfill their obligations related to termination within 7 days from the date they are receive the termination notice and to carry out the termination procedures that are initiated by the consumer. In the event that the seller or service provider cannot fulfill the request after the consumer's notice of termination, the service provider or the seller will not be able to demand any remuneration in case the consumer benefits from the service or goods subject to the contract.

Finally, in accordance with the Electronic Communications Ordinance, service providers must notify the consumer within twenty-four hours in case of a termination request. They are obliged to slow down or stop the service after the twenty-four hours are up.