I thought it was an EU regulation, but perhaps not. In Denmark you can't bind customers to a mobile contract for more than six month. You can sell them a phone and have them pay that off for 24 months, but that different, you can pay that off at anytime, for a fee.
That's also why you're not getting a new phone from your carrier every two years like most Americans seems to do.
Phone subsidies have completely disappeared in the United States. Phone companies will finance your phone over 24-30 months but you can cancel the contract (and the interest free financing) at any time.
It's sort of interesting that, if you had told people 5+ years ago that phone subsidies were going away, a lot of them would have predicted a lot of doom and gloom for Apple and other smartphone makers. In fact, I bet if you looked around, you could probably find articles and reports to that effect.
That I fully agree, most aren't even aware of their work rights, having had a quite good works council on my first employer really opened my eyes to care about the German legal system.
The point is that - if we were to take seriously the claim that consumer rights are well protected by the governments outside of the US - their help shouldn't even be needed.
My feeling living in Germany is that consumer protection rights goes as far as the "right" for some bureaucrat to keep their job. It's a constant feeling they create the problem so that they can sell the solution and get people to be oh-so-thankful for it.
I see if differently, the EU governments have made it possible that such kind of help exists, and is actually empowered to protect us.
In US, as far as I am aware it isn't even possible to have such kind of help, and those organizations that do try to help, just go through the same endless court sessions as hiring a random lawyer would do, plus having to pay them way beyond the almost symbolic "Gebühren" that you pay here.
So while the situation isn't perfect, it could be much worse.
That's also why you're not getting a new phone from your carrier every two years like most Americans seems to do.