Wet van Dam

Business contracts and Dam's Law

Earlier in this text, we cited that the Dam Law is meant to protect consumers. But does this law also apply to business contracts? This depends on the situation. After all, as a businessman, you are in principle bound by the general terms and conditions of the party with whom you have concluded a contract or subscription.

The Dam Law for sole traders

Companies are often bound by the general terms and conditions attached to a contract or subscription, but sole traders are sometimes an exception to this. The Act of Dam does apply to sole traders as they are in a similar position to consumers.

The Dam Act and terminations

When cancelling a subscription or contract, you may have to deal with the Dam's Law. By the way, do not think that this law works the same for every cancellation, because it does not. That is why we tell you all about Dam's Law and terminations here.

Lotteries
If you have a subscription to the Friends Lottery or National Postcode Lottery, a lottery may tacitly change it to an open-ended subscription. After a tacit renewal of a subscription to a lottery, a notice period of up to 1 month applies.

Charities
Have you been donating to the CliniClowns or the World Cancer Research Fund for years? Then your membership is now indefinite. Charities can then cancel at any time, but a notice period of 1 month applies.

Insurances
For insurances, the same rules apply as for lotteries and charities. If your contract with Nationale-Nederlanden or Chubb European Group has already been renewed once, it is an open-ended contract. Anyone who wants to get out of their contract can terminate it at any time.

Fitness and Gyms
Do you no longer sport at Basic-Fit or Fit for Free? Then you want to cancel your membership at the gym. If the agreed subscription period has now expired, a notice period of 1 month applies. After all, there is then a subscription for an indefinite period of time, so Dam's Law applies.

Newspapers and magazines
Cancelling newspapers and magazines works slightly differently from most other subscriptions. This is because your subscription to DPG Media or Plus Magazine may be tacitly renewed for 3 months. Do you cancel your subscription during this period? Then there is a maximum notice period of 1 month. A trial subscription to a newspaper or magazine ends automatically and may not be tacitly renewed.

Telephone, Internet & TV
Providers such as CanalDigitaal and KPN often work with contracts for 1 or 2 years. When the period expires and you do not cancel the contract yourself, it is converted into an open-ended subscription. You can then cancel at any time, but there is also a notice period of 1 month.

Online services
Has your subscription to Netflix or Spotify already been tacitly renewed once? If so, you may cancel them at any time thanks to the Dam Law. When cancelling online services, however, you will face a one-month notice period, which means your subscription will not end immediately.

Payments and Loans
Many people cancel their subscription to Visa World Card or ANWB VISA. Rules also apply to pay-and-loan cancellations. Cancellation is free of charge after 1 year. For pay and borrow, a notice period of 2 weeks applies.

Rental contracts
A rental agreement is not covered by the Dam Act. This means that such an agreement may be tacitly renewed. Nevertheless, it is possible to get out of a rental agreement. Often, the agreement states a minimum period for which something is rented and a notice period.

Dam's Law as protection for consumers

Before the van Dam Act was introduced, a subscription was allowed to be tacitly renewed for another year if the subscriber did not terminate the subscription himself. Since the introduction of the Dam Act, this is no longer possible. Therefore, this law can be seen as a protection for consumers. Indeed, thanks to the law, you may terminate a subscription at any time after it has been converted from a fixed-term subscription to an open-ended one. Note that a notice period does apply.

Law: Law of Dam

While the Dam Act protects consumers, it does not mean that everyone can rely on it. In addition, the law does not apply to every situation. Therefore, you may be curious about the legal text of the van Dam Act. We list the most important issues for you below.
- Clients can tacitly extend a contract or subscription whose initial term has ended. After this extension, the contract or subscription is for an indefinite period.
- Consumers can always terminate open-ended contracts and subscriptions. The notice period is one month.
- Certain methods of termination may no longer be excluded.
- Newspaper and magazine subscriptions may be tacitly renewed for a maximum of 3 months. Termination must always be done 1 month before the end of the subscription period. If a magazine is published less than once a month, a maximum notice period of up to 3 months applies.

Tacit renewal

Have you taken out a subscription and is it coming to an end? Then don't expect the subscription to end on its own. This is because a company may tacitly renew your contract or subscription after this period. After a fixed-term subscription is tacitly renewed, you can cancel it at any time.

Misconceptions regarding the Dam's Law

Due to Dam's Law, consumers often think that a contract or subscription can always be cancelled with a month, but this is not the case. Monthly termination is possible only after a fixed-term subscription has been converted to an open-ended one. Another misconception is that people often think that Dam's Law also applies to associations. This is only the case if an association provides services that require a member to enter into a separate contract.

Frequently asked questions about Dam's Law

What is Dam's Law?

Dam's Law is a law that restricts the tacit renewal of subscriptions. After the expiry of the first subscription period, the subscription may be converted to an open-ended subscription. Termination is possible at any time from then on.

Which services are covered by the Dam's Law?

The Dam's Law applies to the cancellation of lotteries, charities, insurance, fitness and gyms, newspapers and magazines, internet and television, online services and payments and loans. The law does not apply to rental agreements.

What is the legal text of the van Dam Act?

The legal text of the van Dam Act is concerned with protecting consumers. This is because they are not acting in a professional or business capacity. Small businesses and the self-employed can also claim this law. This is because they are in a similar position to consumers.

What about general terms and conditions and Dam's Law?

Companies must align their general terms and conditions with the van Dam Act. If they fail to do so, customers can [terminate] their contract or subscription after a tacit renewal on a daily basis immediately(search).

May I cancel at any time after my subscription has been tacitly renewed?

Yes, thanks to Dam's Law, you may cancel your subscription at any time after it has been tacitly renewed. However, do not expect your subscription to end immediately as there is always a notice period.

Does the law also apply to business contracts?

The Dam Law often only applies to sole traders, as they are in the same position as consumers. If your company is not a sole proprietorship, the van Dam Act usually does not apply. You are bound by the general terms and conditions in that case.