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ECJ Ruling on 'Kauf auf Rechnung' Tightens EU Transparency Rules

The European Court of Justice has clarified that invoice-purchase offers must meet stringent transparency standards, leaving the Bundesgerichtshof to issue the final decision.

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Overview

  • The ECJ ruled that 'Kauf auf Rechnung' qualifies as a 'sales promotion offer' under EU law, subjecting it to high transparency requirements.
  • The case stems from a Verbraucherzentrale Hamburg complaint against Bonprix, alleging misleading advertising for not disclosing mandatory creditworthiness checks.
  • EU law mandates that all conditions for promotional offers, including credit checks, must be clearly communicated to consumers.
  • The Bundesgerichtshof (BGH) will now decide whether Bonprix must explicitly disclose credit checks in its invoice-purchase advertising.
  • Julia Rehberg of Verbraucherzentrale Hamburg expressed optimism that the BGH will rule in favor of enhanced consumer protections.