A free trial becomes a paid subscription: does a new withdrawal period begin?

What happened in Sofatutor

An online learning platform offered consumers a free trial lasting 30 days. They could cancel at any time during that period. Without cancellation, the agreed paid term followed; the subscription could then renew automatically. A consumer organisation sought a requirement to provide fresh withdrawal information at each of these transitions (CJEU, C-565/22, paras 15 to 26).

The CJEU ruled on the interpretation of European consumer law. It did not award money to an individual customer. The case concerned a contractual model agreed at the outset, with initially free use followed by paid use. The Court assumed that the other contractual terms would remain unchanged (paras 43 and 48).

The crucial issue is the price information before ordering

Consumers must be able to understand the financial commitment before deciding. The information given at contract formation about the later charges and total price therefore matters. A free introductory period does not postpone the relevance of that information until the first debit (paras 44 to 48).

If the transition to the paid subscription was explained clearly, comprehensibly and explicitly, the judgment generally provides for a single right of withdrawal. If the later payment obligation was not disclosed transparently, the CJEU requires a new right of withdrawal after the free period, provided the consumer is bound by the contract. The national court must examine how the information was actually presented during ordering (paras 49 to 51 and operative part).

How the proceedings ended afterwards

The Austrian Supreme Court resumed the proceedings. The consumer organisation’s appeal was unsuccessful in its judgment of 13 November 2023, 3 Ob 191/23v. It considered the information in the actual ordering process about the trial, subsequent charges and total price sufficient. This model therefore did not provide an additional right of withdrawal at the transition or on automatic renewal (Austrian Supreme Court, paras 23 to 26; operative part).

This is an important distinction from a blanket assertion that free trials can always be withdrawn from after the first bill. The CJEU judgment provides a basis for examining the actual information. It does not replace that examination.

Which rules also matter for a German contract

Consumers generally have a right of withdrawal from a distance contract under section 312g of the German Civil Code (BGB), unless an exception applies. The standard period is 14 days. For the service contracts discussed here, the starting point is generally contract formation, not the start of payment (section 355(2) BGB).

However, the period does not start before the required withdrawal information has been provided (section 356(3) BGB). Special rules on the expiry of the right may also be relevant. Services and digital content must be distinguished carefully (section 356(5) and (6) BGB). Sofatutor creates neither a blanket exception for all online offerings nor a refund guarantee. Any agreed cancellation option must also be assessed separately.

Which documents to preserve now

Our practical assessment: the decisive evidence is often the order page as it appeared at the time. Today’s advertising or the first bill does not reliably show what was explained when the contract was concluded. Ask the provider for the order confirmation and the contractual information applicable to your order.

A simplified hypothetical example: a learning platform is advertised with 30 free days. If the other terms remain unchanged, whether a new right of withdrawal arises afterwards depends on how the subsequent paid term and price were explained before ordering. Simply remembering the word “free” does not settle the issue.

• Save the complete order confirmation, contractual terms and withdrawal instructions.
• Preserve any screenshots of the ordering process and price information.
• Record the dates of contract formation, the end of the trial, the first bill and the debit.
• Keep any cancellation or withdrawal notices already sent, together with proof of dispatch.
• State any intended withdrawal clearly to the provider and have the deadline checked promptly.

When a review is useful

A review is particularly useful if the subsequent total price was not apparent during ordering, documents are missing, or the provider rejects a withdrawal solely because the trial has ended. We assess cost information, deadlines and contractual documents together. The specific contract and its performance determine whether termination or recovery of payments is available.