The German Federal Parliament has introduced new legislation to protect online consumers. From 1 August 2012 businesses must give German consumers clear information about the goods or services being purchased directly before the consumer places their online order.

The German legislation implements Article 8 (2) of the EU Directive on Consumer Rights (2011/83/EU) which all member states must introduce by December 2013 and which repeals the current Distance Selling Directive (97/7/EC).

The new rules apply to distance contracts concluded by electronic means and entered into between a business and a German consumer, other than contracts for certain financial services.

Under the new rules a service provider is under a stricter obligation to highlight key information in respect of the product or service. The consumer must now be advised of:

• The main characteristics of the goods or services
• The duration of the contract, if the contract is for permanent or periodic services
• The total price of the goods or services, including taxes
• Any additional charges, such as delivery

Further, the last button which the consumer clicks in order to place the order must be labelled “Zahlungspflichtig bestellen” (“order with an obligation to pay”) or something equally unambiguous. This measure has been introduced to prevent businesses from luring consumers into a contract for a good or service which the consumer believes is free but actually involves payment. If the new requirements are not met the contract will be null and void.

As the changes are as a consequence of an EU Directive, they give an indication of the changes which may apply to Irish businesses when the new Directive is implemented into Irish law.

Contributed by:  Brian McElligott