NowTV query- when is a contract not a contract?

I mean, I bet they wouldnt let you watch, UNLESS you give card details for a rolling monthly payment, and agree to 80+ pages of terms & conditions..

Looks like a contract.

Smells like a contract.

So why do they claim it isn't?

Maybe they can get away from the term 'contract' because you can cancel at any time? Even the day before auto renewal. Whereas a rolling monthly contract normally has a minimum 30 days notice to cancel.

clippedgull said:

Maybe they can get away from the term 'contract' because you can cancel at any time? Even the day before auto renewal. Whereas a rolling monthly contract normally has a minimum 30 days notice to cancel.

Click to expand...

Technically speaking, it's a contract: they agree to provide a service in return for the customer agreeing to pay a fee. The fact it can be cancelled and restarted at any time is irrelevant: a contract exists.

On the other hand, there is the concept of "how would the average reasonable person interpret..." that often gets applied by bodies such as the Advertising Standards Agency. I can see the argument that NOW TV (and others) would apply in situations like this: "the average reasonable person interprets "contract" as something that locks you in for a long time. Our service doesn't do that."

Further, the NOW TV service is a pre-pay service with no obligation to continue paying. So you can argue that while a contract exists (as detailed above), that contract only enforces on the provider and not the customer. NOW TV, having received payment, are obligated to provide the service for one month. There is no obligation on the part of the customer to continue to pay, or even to use the service having paid for it. The end effect of that is that there's no enforceable contract for the customer, but there is for the provider.

Tricky one, which I expect will get tested with the ASA at some point. Until it does get tested, it's a grey area.

yeah but, no but.. Money gets taken each month, unless YOU cancel.

Isn't Amazon Prime the same though? I canceled mine online so no 'retention' people to go through. My mobile is a rolling 30 day contract that I can stop at any time.
It's a case of 'you pay - they supply, don't pay - no supply' but no default penalty payment.

It's the same as The Gym. I've got a direct debit setup which transfers £21.99 to them every month which allows me 24/7 access to their facilities until I cancel it.

Compare that to the gym I belonged to in Worthing which charged me £25 a month and could not be cancelled until a month before the 2-year term was up.

I'd sum it up like this:

The first one is a convenience.
The second, is a contract.