Automatic Renewal
Also known as: Auto-Renewal, Automatic Extension, Subscription Renewal, Charging after Free Trial, Otomatik Yenileme
Author Ali Gül
In short
A subscription automatically extending for the same term at the end of its period without the consumer's separate consent; such clauses may not be included in fixed-term consumer subscriptions, which may only be extended at the consumer's request or with their consent.
Automatic renewal means a subscription automatically extending for the same term at the end of its period without the consumer’s separate consent. Common in digital services, it is restricted under Turkish consumer law for fixed-term subscriptions.
Prohibition for Fixed-Term Subscriptions
Under Article 52 of Law No. 6502, fixed-term subscription contracts may not include clauses extending the contract by the agreed term. The contract may only be extended after conclusion and before it ends, at the consumer’s request or with their consent. A general “renew automatically at the end of the term” consent obtained at signing does not satisfy this rule.
Indefinite-Term Subscriptions
Monthly subscriptions that continue until the consumer cancels are indefinite-term contracts; their continuation is not automatic renewal. In such subscriptions the consumer may terminate at any time without reason or penalty, and termination must be easy.
From Free Trial to Paid Subscription
Moving from a free trial to a paid subscription is one of the most common complaints in practice. For the switch to be lawful:
- The consumer must be informed clearly and in advance that a paid subscription will follow, of the price and how to cancel,
- The consumer’s active consent must be obtained,
- Sending a reminder before the trial ends is recommended,
- Cancellation must be easy during the trial too.
Hiding this information or obtaining consent through pre-ticked boxes may be an unfair commercial practice and a dark pattern.
Business Contracts
Automatic renewal clauses in software and service contracts between businesses are not subject to consumer law and are common. They should, however, be drafted clearly with reasonable notice periods for termination; otherwise the Turkish Code of Obligations’ rules on standard terms may come into play.
Frequently Asked Questions
Can we automatically renew a fixed-term subscription at the end of the term?
Fixed-term subscription contracts may not include clauses extending the contract by the same term. However, after conclusion, the contract may be extended at the consumer's request or with their consent before it ends.
Can we start a paid subscription automatically at the end of a free trial?
Yes, if the consumer was informed clearly in advance that a paid subscription would follow, of the price and how to cancel, and consented. Hiding this information or making cancellation difficult may be a misleading commercial practice.
Related Services
Publications in this area
- The Guide on Consumer Reviews Has Been Published! 21.09.2023
- E-Commerce Regulations Published! 02.01.2023
- The Innovations Introduced to the E-Commerce Law and Their Potential Effects on the E-Commerce Sector 02.12.2022
- Changes Made in Discount Sales Advertisements and Commercial Advertising Regulations 02.03.2022
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