Zurich Court Rules Sunrise Contract Terms Illegal

by Chief Editor

The Bezirksgericht Zürich has ruled that two central clauses in the general terms and conditions (AGB) of Sunrise are illegal. This decision follows a lawsuit filed by the Konsumentenschutz approximately one and a half years ago.

The court found that the company’s practices regarding price increases and termination methods violated legal standards. The Konsumentenschutz described the contested terms as «dreisten Klauseln» (brazen clauses) and stated that the ruling «stärkt die Rechte der Konsumentinnen und Konsumenten deutlich» (significantly strengthens the rights of consumers).

Illegal Price Adjustments and Termination Restrictions

One of the primary issues involved how Sunrise handled price adjustments. The company reserved the right to increase tariffs if the Landesindex für Konsumentenpreise (LIK) rose, yet it was not obligated to lower prices when inflation decreased.

the AGB explicitly excluded the right to extraordinary termination for customers who disagreed with these price hikes. The court ruled that such price increases without a corresponding option for extraordinary termination are inadmissible and violate the Federal Act against Unfair Competition (UWG).

Did You Know? The legal proceedings were triggered by a lawsuit filed by the Konsumentenschutz roughly one and a half years ago to challenge these specific AGB clauses.

Ending the “Hurdle” for Contract Cancellations

The court also struck down a second clause regarding how Sunrise customers could end their contracts. Previously, the company only permitted terminations via phone or chat, refusing written requests.

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The Bezirksgericht Zürich classified this restriction as an “unnecessary hurdle” for consumers. Customers must once again be allowed to cancel their contracts in writing.

Expert Insight: This ruling targets a growing trend of “digital-only” exit barriers. By classifying the refusal of written termination as an unnecessary hurdle, the court is signaling that operational convenience for the provider cannot override the basic contractual rights of the consumer.

Broader Industry Implications

While the ruling specifically targets Sunrise, the Konsumentenschutz believes this serves as an important signal for the wider market. Similar regulations are reportedly in place at other providers, including Salt and Swisscom.

Because of this precedent, other telecommunications providers may face pressure to review their own AGB to ensure they do not similarly violate the UWG. This could potentially lead to a broader shift in how price indexation and termination processes are handled across the industry.

Frequently Asked Questions

What did the Bezirksgericht Zürich decide regarding Sunrise?

The court ruled that two clauses in the Sunrise AGB were illegal: one regarding price increases without extraordinary termination rights and another that restricted contract cancellations to phone or chat only.

Frequently Asked Questions
Sunrise The Bezirksgericht Federal Act

How does this ruling affect how customers can cancel their contracts?

Sunrise customers must now be able to cancel their contracts in writing, as the court found that limiting cancellations to phone or chat created an unnecessary hurdle.

Why were the price increase clauses found to be illegal?

The court determined that increasing prices based on the Landesindex für Konsumentenpreise (LIK) while excluding the right to extraordinary termination violates the Federal Act against Unfair Competition (UWG).

Do you prefer to handle your contract cancellations via digital chat or through traditional written correspondence?

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