The Court of Justice of the European Union has ruled that in the case of distance contracts concluded online, traders must explicitly inform consumers of the obligation to pay, even if this is subject to subsequent events.
A tenant in Germany signed an electronic contract with a company specialising in debt collection. The purpose of the contract was to recover overpaid rent. The company offered this service for a fee, which would only be payable in case of success. However, the order button on the company’s website (which was used to conclude the contract) did not explicitly mention this potential payment obligation. In this context, the German courts requested the Court of Justice of the European Union to determine whether the requirement that consumers be explicitly informed of payment obligations also applies in cases where payment is subject to the fulfilment of other conditions, such as the successful debt collection.
According to the Court, traders must explicitly inform consumers of any payment obligation, including when it is conditional on certain future events. The Court emphasised that the relevant legislation does not distinguish between unconditional and conditional payment obligations. The purpose of the information obligation is to protect consumers and to ensure transparency in online transactions by avoiding situations in which they may be surprised by unexpected financial obligations. Therefore, even where payment depends on future factors, consumers should be fully aware of their obligations.
