EU Court Rules on Clarity of Payment Obligations when Ordering Online
A landlord took legal action against a company providing debt collection services for a tenant's overdue rent. Based on the agreement's fine print, the tenant was meant to pay a third of the saved rental amount to the service provider if they were successful in collecting the arrears.
The landlord accused the tenant of not legally engaging the service provider, as the "order button" lacked the usual "payment commitment" notice. The European Court of Justice (ECJ) has now ruled that companies must inform consumers, per EU consumer regulations, that they're undertaking a payment commitment with this order, even if it only involves potential success.
This implies that the consumer, here the tenant, isn't bound to the order if any violations occur. Although, the judges reassured that the consumer can still confirm their order. Consequently, German courts, seeking legal clarification, must now adhere to these instructions from Luxembourg in their decision-making process.
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