German Consumer Law Imposes New Obligations For Businesses Offering Subscriptions

The "subscription economy" has grown five to eight times faster than traditional businesses over the last decade, according to a report by Zuora, a subscription management platform. With just one click, consumers can enter into subscriptions involving various goods and services, from utilities and beauty products to streaming platforms. Given the model's growth, it is no surprise that the subscription market has never been bigger in Europe, with European households report spending a monthly average of €130 on subscriptions.

However, as subscription options exploded with the market's growth, so did concerns about consumers inadvertently exposing themselves to "subscription traps". Subscription traps include situations where consumers are misled into signing up for a subscription or where they face challenges in exiting a subscription. In all likelihood, many consumers have found it hard to cancel a subscription after the expiration of the trial period or ended up