Financial expert: Court ruling strengthens consumer rights for online cancellations

Financial expert: Court ruling strengthens consumer rights for online cancellations

According to a report by netzpolitik.org, the Munich Regional Court has decided that online terminations must be possible without registering on a website. This decision was preceded by a lawsuit by the Federal Association of Consumer Organizations (VZBV) against Sky Deutschland because the termination process on Wow, a Sky streaming service provider, was opaque and difficult to understand for consumers. The court reasoned that providing the name and other identifying information should be sufficient to qualify for termination.

The district court's decision could have far-reaching effects on the market. The Fair Consumer Contracts Act has required companies to set up a clearly visible cancellation button on their website since July 2022. This obligation applies to all providers who sell their services via online contracts. The ruling could also impact other companies that engage in similar business practices, as not all of them comply with the new law.

An investigation by the VZBV from June 2023 showed that even a year after the law came into force, obvious deficiencies could be identified in the implementation of the regulation. Less than half of the websites reviewed have an unsubscribe button that meets legal requirements. This suggests that companies may have difficulty complying with the law's requirements.

Overall, it can be seen that the ruling of the Munich Regional Court and the regulations created by the Law for Fair Consumer Contracts strengthen consumer protection and give consumers more rights. However, it remains to be seen how companies will react to these developments and to what extent the implementation of the law can be improved.