Many Dutch consumers overpay for internet with passive contracts
By Simone Jacobs
A report by the Dutch Authority for Consumers and Markets (ACM) has revealed that many residents overpay for internet in the Netherlands. The issue is most obvious with contracts that are automatically renewed with price hikes.
Many residents in the Netherlands are overpaying for internet
Based on an ACM study, households in the Netherlands with low-speed internet subscriptions of up to 100 Megabits per second (Mbps) often pay more than those with higher speed connections. According to the consumer organisation, this is mainly due to consumers with lower-speed internet having what are known as passive contracts.
This occurs when the initial contract period ends and the contract is automatically renewed. Prices then increase for existing customers, something which ACM calls a “loyalty penalty”. This can add up quickly, leading to loyal customers paying up to 10 euros more per month within a few years.
According to ACM, around 5 million households in the Netherlands are paying too much for internet because of these passive contracts. For lower speeds, in particular, switching internet providers or signing up for a new subscription could save 250 euros a year.
Dutch internet providers should be more transparent with consumers
The Dutch consumer authority has noticed that telecom companies do not properly inform customers about the expiration of their contracts and price changes. This is why the ACM will provide internet providers with guidelines by this summer on how to clearly and transparently provide information on contract status, prices and speed recommendations based on actual usage.
“This will make it clearer for consumers how they can save money on their internet subscription with a new contract or by switching providers, and by how much,” ACM board member Manon Leijten explained in the report. “Because our research shows that this information provision is often insufficient, we will issue guidelines for providers, and we will enforce them accordingly.”
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Editor for the Netherlands at IamExpat Media. Simone studied Genetics and Zoology at the University of Pretoria in South Africa before moving to the Netherlands, where she has been working as a writer and editor since 2022. One thing she loves more than creating content is consuming it, mainly by reading books by the dozen. Other than being a book dragon, she is also a nature lover and enjoys hiking and animal training.Read more