Financial expert: DAZN clauses ineffective - consumer advice center wins before LG Munich

Financial expert: DAZN clauses ineffective - consumer advice center wins before LG Munich

According to a report by www.wbs.legal, the Munich Regional Court (LG) has declared nine clauses in the terms of use (Terms and Conditions) of the streaming provider DAZN to be invalid. The clauses on price adjustments and contract changes were classified as non-transparent and disadvantageous for consumers.

DAZN's price adjustment clause allowed the service price to be adjusted to changing market conditions. The court ruled that this violated the ban on transparency and constituted unreasonable discrimination. The clause is not transparent because it is not clear which market and in which countries the clause is based. The court also found that the clause enables DAZN to assert its own interests at the expense of customers without sufficiently taking their interests into account. Likewise, the clause was deemed ineffective because it did not provide for an obligation to reduce prices in the event of cost reductions.

Another clause allowed DAZN to unilaterally vary the design and availability of the contract content. The court ruled that this clause was inadmissible because it carried the risk that the contract could be modified to such an extent that sports broadcasts would no longer take place. DAZN’s reservations for changes were therefore classified as inadmissible.

Overall, the Munich Regional Court's decision is likely to have an impact on the market, as it shows that clauses in the terms of use of streaming services can be critically questioned and, under certain circumstances, declared invalid. This means consumers can be better protected from potentially disadvantageous clauses. Since DAZN has already filed an appeal and the Federal Association of Consumer Organizations is seeking a model declaratory action against DAZN due to price increases, the legal dispute is likely to continue.