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Bill would restrict telcos’ use of ‘loyalty contracts’

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MPs of governing Fidesz have submitted a bill to Parliament that would limit to one year the duration of "loyalty contracts" telecommunications companies offer and allow subscribers who have such contracts to cancel them, without penalty, if the service provider unilaterally changes the contract to the subscriberʼs disadvantage, according to state news agency MTI.

These "loyalty contracts," which telcos, ISPs and cable television companies use to commit subscribers for periods of up to two years in exchange for discounts and other benefits, make consumers "completely vulnerable," the billʼs authors György Balla and László Kucsák said in their justification.

The bill would also prohibit service providers from putting subscribers whose "loyalty contracts" expire at any disadvantage compared to new subscribers.

Among the reasons for cancelling "loyalty contracts" without penalty that the bill mentions are higher tariffs and changes to the mix of channels offered by TV companies.

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