Who can terminate a contract with a telecom operator without penalties?

Users who have sealed contracts with services providers such as telecom operators can, under certain circumstances, drop out of their subscriptions without paying an early termination fee, despite originally agreeing to pay penalties for terminating the contract before the agreed term, according to Law 161 of 2010, promulgated by the Romanian President on July 9.

The law initiated by PD-L (Democratic Liberal Party) senator Iulian Urban, modifies Law 296/2004 (Consumption Code) and Law 193/2000 (on abusive contract clauses) and targets all merchants and providers of services, despite senator Iulian Urban saying he initiated the draft law primarily to stop the “unfair system of charging fees on contracts terminated by Romanian consumers in the Internet-telephony sector.” The change introduced in the Consumption code blocks the suppliers’ potential attempts to limit customers’ rights to terminate a contract, but leaves companies their right to “just compensation”. The companies will now be able to ask customers who drop out of their contracts before the originally agreed term, to pay back any discounts operated to mobile phone prices or to pay back the amount normally charged for the installation of a service such as satellite TV.