How to provide legally compliant coaching under consumer law: focus on general terms and conditions and right of withdrawal

Coaching is a dynamically growing concept that is increasingly being offered via digital channels. However, online coaching in particular poses legal challenges. While legal disputes in the past have mainly focused on the applicability of the German Distance Learning Protection Act (FernUSG), consumer law issues are now increasingly coming to the fore. In particular, the classification of coaching contracts as distance selling contracts and the effective inclusion of general terms and conditions pose challenges. These aspects are crucial not only to establish a legally compliant coaching practice, but also to ensure consumer protection and prevent potential conflicts that could affect the effectiveness and existence of the contract.

In addition to legal hurdles in the inclusion of general terms and conditions, the coach as a contractual partner in his role as an entrepreneur is therefore subject to special legal behavioral requirements in contracts with consumers who enjoy special protection throughout Europe (so-called consumer contracts):

I. Effectively including general terms and conditions in coaching contracts

Coaches regularly use general terms and conditions. According to Section 305 (1) sentence 1, general terms and conditions are all pre-formulated contractual terms and conditions for a large number of contracts that one contracting party (user) imposes on the other contracting party when concluding a contract. Caution is required here in particular with regard to the legal requirements for effective inclusion. Consumer protection is now one of the core principles of GTC law. In particular, it is important that the user informs the other contracting party of the GTC expressly or by means of a clearly visible notice when the contract is concluded and gives the other contracting party the opportunity to take note of their content in a reasonable manner (Section 305 (2) BGB). The agreement of the contractual partner with the validity of the GTC alone is therefore not sufficient. In particular, provisions are invalid if they unreasonably disadvantage the contractual partner of the user contrary to the requirements of good faith (Section 307 (1) BGB). The unreasonable disadvantage may also result from the fact that the provision is not clear and comprehensible. In the case of consumer contracts, there are also special features, such as the consideration of the circumstances accompanying the conclusion of the contract (Section 310 (3) BGB). This includes, for example, information that the coach provides to the consumer in advertising brochures or other contractual documents during the initiation of the contract or personal characteristics of the contractual partner that affect the negotiating position. Errors can lead to important clauses - such as payment terms or liability - being invalid.

II. The coaching contract as a distance contract and consumer revocation

For coaching contracts that are also consumer contracts, the right of withdrawal with its statutory provisions and requirements is also relevant.  
A consumer's right of withdrawal depends on the type of coaching contract. The starting point for consumer revocation is the classification of the contract as a distance contract in accordance with Section 312c BGB. This is a contract that is concluded exclusively using means of distance communication, i.e. without the simultaneous physical presence of the contracting parties.

The coaching contract could now be classified as a distance contract from various perspectives: If, for example, coaching in the form of a formalized educational offer with methodical monitoring of learning success is to be classified as distance learning, either the right of withdrawal under Section 312g (1) BGB applies directly; otherwise, in the case of contracts agreed neither off-premises nor at a distance, the consumer withdrawal regulations of the BGB apply accordingly via Section 4 FernUSG. However, not all coaching automatically falls under the FernUSG, especially if it is designed as an individual development program. Nevertheless, the consumer protection laid down in the withdrawal regulations is also applicable here. A coaching contract between an entrepreneur and a consumer is to be classified as a distance contract if it is concluded exclusively via means of distance communication such as telephone, email or forms of communication such as chat messages in social networks. In this respect, the same applies as for distance learning contracts concluded at a distance. The right of withdrawal is then governed by Sections 312g, 355 and 356 BGB. Coaches are therefore obliged to properly inform consumers about this right before the contract is concluded. In the absence of such information, the 14-day withdrawal period and thus the possibility of reversing the services already provided is considerably extended.

III. Conclusion

The drafting of legally compliant coaching contracts requires special attention in order to meet the requirements of consumer protection. Coaches who offer their services online or via distance selling must ensure that they properly inform their clients about the right of withdrawal. Incorrect or omitted information can lead to considerable legal disadvantages, such as extensions of deadlines or reversals that directly affect the existence of the contract and thus hinder the smooth processing of coaching contracts.

The effective inclusion of general terms and conditions is also crucial. These must be clear, transparent and accessible to the customer before the contract is concluded. Especially in the digital environment, coaches should ensure that GTCs are easy to find, for example by means of a checkbox in the booking process.

Coaches who carefully implement these legal requirements not only avoid disputes, but also strengthen the trust of their customers. A legally compliant contract process is therefore an important building block for sustainable success in the coaching industry as a whole.