Court of Justice: order button must clearly show payment obligation

Online orders

A legal maximum for the rental price of a home applies in Germany. Is the monthly rental price higher? Then the tenant can request a refund of the sum overpaid. In this case, the tenant believes he has paid too much rent and wants the difference refunded.

He engaged the Conny GmbH agency by registering on the website. He ticked a box on the Conny website to accept the terms and conditions. He clicked a button to confirm his order. The tenant subsequently received a form. That form says nothing about an obligation to pay.

Lawsuit

Conny contacted the landlord to request a refund for the tenant. The landlord did not respond, so Conny took the matter to court. Legal proceedings followed. The landlord said Conny cannot act on behalf of the tenant. According to the landlord, the button the tenant clicked online is insufficient. The button should have made it clear that the tenant had entered into a payment obligation. The landlord believes that obligation was not made clear and that Conny and the tenant therefore do not have a valid contract.

Court of Justice

The German judge requested a clarification from the Court of Justice. When making an online purchase, the order button must clearly state that the consumer is engaging in an obligation to pay. Does this also apply if you enter into an agreement where you do not have to pay immediately, but at a later date?

The Court says a trader must inform the consumer of the obligation to pay before they place the order on the internet. The trader's obligation in this regard applies if payment must be made immediately or if payment must be made afterwards if a certain condition is met.

Next steps

Conny has amended the wording on the order button. The German judge has yet to issue a final judgement in the matter. The Court has made it clear that the tenant is not bound by the contract. However, he may opt to confirm the contract and allow Conny to proceed with the case.

Want to know more?

You can read the full ruling in case C-400/22 Conny Online orders on the InfoCuria website (case law of the Court of Justice) CURIA - Documents (europa.eu).