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[Comment] § 5.6 — Support time-based cancellation penalties and contractual conditions #85

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@clerongi

Which section?

5.6 — Commercial terms

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OpenProposal already includes a cancellation_policy field, but its current structure does not explicitly define how cancellation penalties vary according to the time remaining before campaign execution.

In OOH and DOOH advertising, cancellation conditions may depend on the campaign start date, production commitments and operational deadlines.

For example, a commercial agreement may define different cancellation penalties at 60, 30 or 7 days before the campaign start.

We recommend extending cancellation_policy to support:

Multiple cancellation periods relative to campaign start.

Percentage-based or fixed cancellation penalties for each period.

Distinction between media cancellation fees and non-refundable production costs.

Partial cancellation of placements, line items or campaign periods.

The applicable time reference and calculation method.

Machine-readable identification of the cancellation conditions accepted by the buyer.

This would allow buying agents to assess the financial risks of a commitment and understand cancellation consequences before accepting a proposal.

Concrete scenario

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  1. KonstantinMirin commented on Oct 22, 2026

    @KonstantinMirin

    Postindustria (IAB Tech Lab member) supports #85. Our change request on cancellation and exclusivity options proposes fee[] tiers and takes the step schedule from #85. Each cancellation_policy option also gets notice_period, max_share for partial cancellation, and periods[]. Completed production work (§ 5.4) stays owed, which is #85's non-refundable production cost (#78, printing and production for physical OOH).

    #85's steps at 60, 30, and 7 days as a tier list, with example rates:

    fee:
      - { before_start: P60D, basis: none }
      - { before_start: P30D, basis: cancelled, rate: 0.25 }
      - { before_start: P7D,  basis: cancelled, rate: 0.5 }
      - { before_start: P0D,  basis: cancelled, rate: 1.0 }

    before_start counts from notice received to the flight start. The entry with the longest before_start that the notice meets applies, so cancelling 45 days before the start costs 25% of the cancelled amount. The selected option is part of the agreed record (our binding-record filing, record_digest (#63)), and exercise runs downstream (our agreed-baseline comment (#68)).

    Open questions:

    1. Should a percentage penalty apply to the cancelled amount (basis: cancelled), as in our example, or to the whole commitment (basis: commitment), and which of the two do OOH contracts usually state?
    2. Should before_start count from notice received, as we propose, or from notice sent?
    3. Should production that is ordered but not completed by the effective date, such as printing already sent to the printer (printing, installation, and removal for physical OOH (#78)), also stay owed, or only completed work, as our change request on cancellation and exclusivity options proposes?
    4. Whether a fee should replace moving the effective date when notice arrives late is asked in our change request on cancellation and exclusivity options.
    5. Is the selected option in the agreed record (record_digest for the binding record (#63)) enough to identify the accepted conditions, or should it also point to the legal terms that terms_ref (relationship and contract references (#27), draft PR for terms_ref and agreement_ref (#75)) pins?

    Analyzed and generated with the help of Claude, fully reviewed by me.

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