The German Distance Learning Act (Fernunterrichtsschutzgesetz, FernUSG) applies when: (1) the provider and learner are separated in place (i.e., learning takes place remotely rather than in-person); (2) the learner's success is monitored by the provider; and (3) consideration (a payment) is charged. The Act applies to a broad range of online courses, coaching programs, and e-learning products. Many providers of video courses, online academies, and digital coaching programs fall within its scope without being aware of this.
Providers of distance learning courses that fall within the scope of the FernUSG are required to obtain state approval (staatliche Zulassung) from the State Central Office for Distance Learning (ZFU) in Cologne. The approval process involves a substantive review of the course materials, the provider's legal and financial standing, and compliance with the FernUSG's formal requirements. Operating without approval exposes the provider to regulatory sanctions and renders contracts with learners potentially void.
The FernUSG provides learners with significant consumer protections. In particular, learners have a right to terminate a distance learning contract at any time with two weeks' notice. On termination, the provider can only charge for the portion of the course already used — prepaid amounts for unused course portions must be refunded. These termination rights cannot be contracted out of. Providers must also provide a cooling-off period of 14 days after contract conclusion, separate from the ongoing termination right.
Drafting distance learning contracts that comply with the FernUSG requires attention to a number of specific requirements: the contract must be in writing and include mandatory information about the course content, duration, and price; the termination rights of the learner must be clearly stated; and the contract must not contain any provisions that seek to waive or restrict the learner's statutory rights. We advise providers on structuring their contracts, terms of business, and course materials to achieve FernUSG compliance.
The FernUSG applies if three conditions are met: (1) learning takes place at a spatial distance from the provider (i.e., remotely); (2) the provider monitors the learner's progress or success; and (3) consideration is charged. Many video courses, online academies, and digital coaching programs meet these criteria. Live webinars may fall outside the scope if they are purely synchronous with no independent monitoring element. Legal assessment of each specific offering is recommended.
Operating a distance learning course without the required state approval from the ZFU is a regulatory violation and can result in administrative sanctions. Additionally, contracts concluded without the required approval may be void under certain circumstances, which would obligate the provider to refund all payments received from learners. The risk of operating without approval is therefore very significant, both financially and reputationally.
Yes. Under the FernUSG, learners have a right to terminate their distance learning contract at any time with two weeks' notice. On termination, they are only obligated to pay for the portion of the course they have actually used. Prepaid amounts for unused portions must be refunded. This right cannot be excluded by contract. Providers must structure their pricing and refund policies to reflect these statutory obligations.
Yes, if approval is lacking, customers can demand a refund of payments already made. This stems from the nullity of the contract under Section 7 (1) of the FernUSG in conjunction with the provisions on unjust enrichment in Sections 812 et seq. of the German Civil Code (BGB). The right to a refund exists regardless of whether the customer has already utilized the services.
Yes, according to the Federal Court of Justice's (BGH) ruling from 2025, the FernUSG also applies to contracts between businesses. The personal scope of the law is not limited to consumers but encompasses all participants in distance learning. This has significant implications for providers who previously assumed they could avoid the scope of the law by restricting their offerings to commercial customers.
