Will FernUSG
be
phased out?
Will FernUSG
be
phased out?
of
The Federal Ministry of Education, Family, Senior Citizens, Women, and Youth plans to abolish the licensing requirement under the FernUSG effective July 1, 2027; the law itself is not scheduled to be permanently repealed until June 30, 2028. For coaching providers, who had just come under immense pressure due to the FernUSG, even this first step would provide significant relief.
What the draft bill on the repeal of the FernUSG provides for
According to the draft bill from the Federal Ministry of Education, Family, Senior Citizens, Women, and Youth dated August 17, 2026, the requirement for approval of distance learning courses is to be eliminated as of July 1, 2027. The ministry justifies this by stating that the Distance Learning Protection Act of 1977 no longer reflects the reality of digital education and that consumer protection is now covered by general civil law. The Regulatory Review Board had also called for the repeal of the Distance Learning Protection Act.
The law is initially to remain in effect in a limited form as a transitional arrangement: Until June 30, 2028, a certificate issued by the competent authority will replace the previous approval, to the extent that other regulations continue to require such proof. Approvals that have already been granted will automatically be considered such a certification during this period. The FernUSG will not be fully and permanently repealed until June 30, 2028.
Why This Matters for Coaching Providers
This relief is long overdue , particularly for the coaching sector. After the Federal Court of Justice classified coaching as distance learning under the Distance Learning Act (FernUSG) and expanded its scope to include contracts with companies, it also broadened the definition of “knowledge transfer.” Until now, online coaching sessions conducted without a license risked rendering the entire coaching contract null and void. It is precisely this licensing requirement that is set to be eliminated as of July 1, 2027.
Recommendations for Coaching Providers
- Keep your contract portfolio in order until the licensing requirement is eliminated. The FernUSG will remain in effect in its current form—as broadly interpreted by the courts—until July 1, 2027. Until then, continue to take the licensing issue seriously when providing instruction that includes assessment of learning outcomes.
- Do not cancel your existing accreditation. According to the draft, it will automatically continue to serve as certification during the transition period until June 30, 2028, saving you the trouble of submitting a new application.
- Weigh new accreditation applications against the timeline. Consider whether the effort and costs of a process are still worthwhile if its basis is likely to be eliminated in the foreseeable future.
- Prepare for certification. If state or funding regulations continue to require a FernUSG license, keep open the option of obtaining certification from the competent authority during the transition period.
- Continue to monitor the legislative process. As long as only a draft bill is available, keep an eye on the timeline and content until the Bundestag passes a resolution before basing business decisions on it.
Conclusion
If implemented as planned, the draft bill would eliminate one of the greatest sources of legal uncertainty in the coaching industry—though it would do so in two steps. July 1, 2027, is the key date in practical terms, as that is when the licensing requirement—and thus the risk of invalidity—is set to be eliminated. The law itself, however, will not finally expire until June 30, 2028.
It remains to be seen whether this timeline will hold. Draft bills are regularly amended as the legislative process continues, and until the licensing requirement is eliminated, the current legal situation—which has been broadly interpreted by the courts—will remain in effect. Affected providers should keep an eye on further developments.
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