Judgment against DAZN: Consumer advocates complain about lack of transparency and contract changes

Judgment against DAZN: Consumer advocates complain about lack of transparency and contract changes

According to a report from www.teltarif.de, the Federal Association of Consumer Organizations (vzbv) has filed a lawsuit against the sports streaming service DAZN because of several clauses in the terms of use. The vzbv particularly criticizes the lack of transparency and the possibility of extensive contractual changes that DAZN has granted itself. The Munich I Regional Court upheld the vzbv's arguments in this case and classified the disputed clauses as ineffective. In particular, DAZN's price adjustment clause, which allowed the streaming service to adjust costs for customers depending on "changing market conditions", was rated as unclear and customer-unfriendly. The court reasoned that the clause did not specify which market it referred to and that it did not impose an obligation to reduce prices accordingly when DAZN reduced costs. The provision was therefore deemed ineffective, even though DAZN granted its customers a monthly right of termination.

In addition, the vzbv also criticizes a clause in DAZN's terms of use, which would theoretically allow the streaming service to adapt the contract so that no sporting events would be broadcast at all. The court classified this as unreasonable for the customers.

In total, the vzbv objected to twelve clauses in DAZN's general terms and conditions. DAZN issued a cease-and-desist declaration for three of these clauses during the legal proceedings. The Munich I Regional Court ruled in favor of the vzbv with regard to the nine other clauses.

DAZN's terms of use have now been adjusted and the judgment is not yet final, as DAZN has lodged an appeal with the Munich Higher Regional Court.

This decision by the Munich I Regional Court and the associated criticism from vzbv may have an impact on the streaming service market and consumers. Streaming services like DAZN could be forced to make their terms of use more transparent and customer-friendly in order to avoid legal conflicts. Customers, in turn, could benefit from clearer contractual conditions and stronger protection of their rights. It remains to be seen how the Munich Higher Regional Court will decide in the appeal hearing and whether the adjustments to DAZN's terms of use are sufficient to refute the vzbv's criticism.

Source: According to a report from www.teltarif.de