Committed Subscription Agreement in Turkish Law

COMMITTED SUBSCRIPTION AGREEMENT: UNDERSTANDING CONSUMER RIGHTS AND OBLIGATIONS

A committed subscription agreement foresees that subscribers who consent to certain contractual terms are entitled to discounts on goods or services offered by sellers or providers. The agreement defines the seller’s or provider’s obligations to provide the service or transfer the ownership or usage rights of goods.

Subscription agreements allow consumers to acquire goods or services continuously or at consistent intervals. These types of agreements are common in sectors such as telecommunications, utilities, and other essential services. Subscription agreements may include the delivery of goods, the provision of services, or a combination of both.

The responsibility for fulfilling the terms of the contract lies with the seller or provider, depending on the definitive provisions of the contract. Rarely, service providers such as GSM operators provide both goods and services through long-term subscription agreements, resulting in the service provider assuming the role of a seller.

Inclusion of a subscription clause in such agreements establishes a continuous debt relationship between the involved parties. Both parties typically need to perform periodic transactions within predetermined timeframes in exchange for a discounted wholesale subscription fee.

A committed subscription agreement allows for changes to be made in favor of the consumer during the term of the contract.

Contractual subscription agreements offer numerous advantages to consumers, including discounted prices on goods or services. When consumers agree to remain in the contract for a certain period, the seller or provider determines the discount amount and benefits from guaranteed sales or services during the contract period. However, consumers face a significant disadvantage: the inability to terminate the contract without penalties before the agreed-upon commitment period.

In consumer subscription agreements, consumers may choose to stay for the duration specified in the contract. However, such agreements should be advantageous for the subscriber. If a seller, provider, or operator mandates a contract that offers no benefit to the consumer, the consumer is not obligated to comply. Additionally, if the seller or provider has a monopoly or abuses the monopoly, the consumer has the right to terminate the contract for a justified reason. The seller or provider earns revenue during the contract period based on the subscriber’s commitment.

HOW IS A COMMITTED SUBSCRIPTION AGREEMENT ESTABLISHED?

Elements

A committed subscription agreement includes several essential elements that distinguish them from other subscription agreements. These elements include the provision of a specific good or service, the subscription fee, and the agreed-upon commitment period.

Provision of a specific good or service: Continuous or periodic provision of a specific good or service to the subscriber.

Subscription fee: Subscribers are required to pay a fee for the continuous or periodic provision of the good or service.

Agreed commitment period: The key difference between committed subscription agreements and other subscription agreements is the subscriber’s commitment to stay in the contract for a specific period agreed upon by the parties. For the contract to be valid, the subscriber must receive a benefit in exchange for their commitment.

Form

The form and structure of these agreements should be clear, simple, and easily accessible to consumers. It is mandatory to provide the consumer with a copy of the subscription agreements either on paper or by a permanent data storage method. This ensures that the consumer has access to the terms and conditions of the agreement throughout the contract period. It is emphasized that subscription agreements should be arranged in a clear and simple manner. This requirement is designed to prevent confusion and misunderstandings between the parties involved. By using plain language and avoiding complex legal jargon, both subscribers and providers can better understand their rights and obligations under the contract.

In summary, committed subscription agreements must comply with the general provisions regulating the form and structure of subscription agreements. By ensuring that a copy of the contract is provided to the consumer and that the contract is written clearly and plainly, both parties can be better informed about their rights and responsibilities. This ultimately contributes to a more transparent and efficient contractual relationship between subscribers and providers.

WHO ARE THE PARTIES IN A COMMITTED SUBSCRIPTION AGREEMENT?

In committed subscription agreements established as consumer transactions, one party is always the consumer, and the other party is the seller or provider of the goods or services.

Subscriber

The natural or legal person who demands the goods or services specified in the contract. In committed subscription agreements, subscribers can have consumer status, although this qualification is not a constitutive element for the contract. The subscriber’s consumer status only allows them to benefit from the protections offered by the Consumer Protection Law. Subscribers acting for non-commercial or non-professional purposes will be considered consumers and benefit from the protections provided by these regulations, while those acting for professional or commercial purposes will receive protection only under general provisions.

Seller

Defined as the natural or legal person who offers goods to the consumer for commercial or professional purposes, including public legal entities, or acts on behalf of or for the account of the goods provider.

Provider

Defined as the natural or legal person who offers services to the consumer for commercial or professional purposes, including public legal entities, or acts on behalf of or for the account of the service provider.

Specifically, regarding subscription agreements, no distinction is made between public legal entities and private legal entities in the law. Public legal entities, such as state-affiliated institutions, are considered sellers or providers, just like private legal entities.

CONSUMER’S RIGHT OF WITHDRAWAL IN A COMMITTED SUBSCRIPTION AGREEMENT

The right of withdrawal is crucial in protecting consumers involved in committed subscription agreements, particularly in cases where agreements are made remotely or outside a traditional business environment. This right, which allows consumers to withdraw from contracts unilaterally without penalty, promotes fairness arising from the contract and empowers consumers to make informed decisions when entering contractual relationships.

At its core, the right of withdrawal encourages consumers to thoroughly consider their choices before entering into a contract. During the withdrawal period, the contract’s terms are suspended, and if the consumer wishes to exercise the right within the period, the contract becomes void. Conversely, if the right is not exercised, the contract becomes valid from the outset.

The right of withdrawal, serving as a tool for consumers to reconsider their decisions and protect themselves from sudden or unexpected contracts, has both retrospective and prospective effects depending on the commencement of performance. If performance has not yet begun, the right of withdrawal produces retrospective effects, restoring the parties to their pre-contractual state. In cases where performance has already commenced, the right of withdrawal produces prospective effects.

When Established Outside the Workplace

Contracts made outside the workplace are increasingly common, particularly in sectors such as telecommunications. Despite their prevalence, these out-of-office contracts may raise concerns about the conditions under which they are established and their potential impact on consumers. Consumers may inadvertently enter into contracts without fully understanding the terms due to environmental pressures or lack of information. To protect consumers from unwanted situations, certain regulations have been implemented in our legislation. These regulations grant consumers the right to withdraw from the contract within 14 days without any justification and without paying any penalty.

The 14-day withdrawal period starts from the day the consumer or the designated third party receives the goods, or in other cases, from the day the contract is established. By understanding the intricacies of contracts established outside the workplace and the rights and regulations surrounding them, consumers can make more informed decisions and better protect themselves from potential pitfalls.

To exercise their right of withdrawal, consumers must notify the seller or provider in writing or through a permanent data storage device. The burden of proof regarding the use of the right of withdrawal lies with the consumer. For the regulation to be valid, the consumer must be aware of the right of withdrawal, and sellers or providers must prove that consumers have been informed of this right.

After receiving the withdrawal notification, the seller or provider must retrieve the goods within 14 days. Otherwise, the consumer is not obligated to preserve the goods and will not face any sanctions for not doing so.

If It Is a Distance Contract

A committed subscription agreement can be made in writing or remotely. Distance contracts refer to agreements formed using remote communication tools without the simultaneous physical presence of the parties. These contracts are established within a system designed for the remote marketing of goods or services involving the seller or provider and the consumer. In such contracts, consumers have the right to withdraw within 14 days without any justification and without paying any penalty. To exercise this right, consumers must notify the seller or provider within the specified period. The seller or provider is obliged to prove that the consumer has been informed about the right of withdrawal. If the consumer is not adequately informed about this right, they are not bound by the 14-day withdrawal period. However, this period, regardless of the circumstances, will expire one year after the original withdrawal period.

During the withdrawal period, the consumer cannot be held responsible for changes or deterioration resulting from the normal use of the goods. The right of withdrawal for subscribers generally applies to the entire contract, not to individual provisions.

These withdrawal periods are mandatory and must be adhered to in transactions. The seller or provider is obliged to refund the subscriber, including delivery costs, within 14 days following the receipt of the withdrawal notification without incurring any additional costs or obligations.

Consumers can make informed decisions and protect themselves from potential issues by being aware of the complexities surrounding their rights and regulations regarding remote committed subscription agreements.

 

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