Passive internet contracts leaving Dutch consumers overpaying, consumer watchdog found
Consumers with low-speed internet subscriptions in the Netherlands may be paying more than those with faster plans due to “passive” contracts that automatically renew after the initial period ends, the Dutch Authority for Consumers and Markets (ACM) reported.
Annual price increases on these contracts can rise by up to 10 euros per month over several years, a practice ACM officials call a “loyalty penalty.” Earlier research showed that 79 percent of fixed internet contracts are already beyond their initial term, with older consumers, typically 65 and above, most affected.
The ACM is now urging telecom providers to give clearer information on contract status, price changes, and recommended speeds based on actual usage. “Consumers who do not or rarely switch providers are currently disproportionately disadvantaged,” ACM board member Manon Leijten said. “We want telecom providers to ensure timely and clear information, including which internet speed matches actual usage. This will make it easier for consumers to see how much they can save by switching or signing a new contract.”
The study found that providers are not consistently transparent about contract endings or the most favorable rates, even though Dutch law requires them to actively inform customers.
Most households reportedly need speeds of 50 to 100 Mbps, but upselling often pushes consumers toward higher-speed plans than needed.
Although the agency cannot yet stop large price differences for the same internet package, it is considering legal measures to ensure that customers on passive contracts do not pay more than the standard list price. Consumers can save up to 250 euros per year by switching providers or signing a new contract at the end of their term.
