Notice requirements for contract cancellations

Often, a contract will specify what notice a customer must give to cancel a service. For example, a customer on a 24-month mobile contract might be required to give 30 days' notice to cancel the service. On expiry of the fixed term under a fixed term contract the contract will usually continue on the same terms and conditions and a customer may be required to give notice of termination in order to end the contract even though the fixed term has expired.

Otherwise, a customer is not required to give notice of termination.

The Consumer Contracts Chapter (5) of the Telecommunications Consumer Protections Code states that, when assessing a term for unfairness, it is relevant to consider whether the object or effect of the term is to:

• require the Consumer to give more than 30 days notice to terminate the Consumer Contract - Clause 5.1.3 (d)(viii)
• permit the supplier to renew or extend a Fixed Contract Period for a further Fixed Contract Period without obtaining the Consumer's express consent a reasonable time before the period expires - Clause 5.1.3 (d)(vii)

The TIO will investigate complaints about a customer having to give notice where:

• the contract does not specify clearly the relevant notice requirement
• the required notice period seems excessive and/or is more than 30 days
• the notice provision has the effect of creating a 'roll-over' contract.

Reference: Telecommunications Consumer Protections Code

Last updated: 14 August 2007
Last updated: 12 May 2008

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