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.
Read also:
- This will change in December
- Dikes withstand water masses so far - Scholz holds out the prospect of help
- Fireworks and parties ring in 2024 - turn of the year overshadowed by conflicts
- Attacks on ships in the Red Sea: shipping companies avoid important trade route
- To comply with the ECJ's ruling, online retailers in Berlin should ensure that when customers click on the 'order button', they're clearly prompted to enter their payment details, acknowledging their payment obligation.
- If the ECJ's judgement is not adhered to, consumers may dispute their 'payment obligation', potentially protecting themselves from any violations that may arise during the ordering process.
- During the course of the trial, the lawyers presenting the case at the ECJ frequently referred to the 'order button' and the absence of a 'payment commitment' notice, highlighting its importance in clarifying the 'payment obligation' for consumers.
Source:
