E-Law

Court Bans Advance Payment

·Last update: Sep 29, 2024

Background of the Ruling

According to the ruling of the Nuremberg Higher Regional Court (Case No. 3 U 1594/23), it was determined that Netto-Online’s practice of requiring prepayment before a sales contract is concluded through the delivery of the goods, violates fundamental principles of the German Civil Code (BGB). The judges ruled that this unreasonably disadvantages consumers and is unfair, particularly when delivery times are only vaguely specified.

Specific Implications for Online Stores

For online store operators, this ruling means they must review their terms and conditions and payment practices. If your online store requires payment in advance, you must ensure that the conclusion of the contract is clearly defined and that customers know exactly when the contract is formed. This may mean that you need to amend your terms and conditions and provide clear delivery time estimates.

Best Practices for Online Stores

The online store of a pet supply retailer provides a positive example. Its terms and conditions clearly state that, when customers choose prepayment as the payment method, the contract is formed as soon as the payment information is submitted. This transparency and clarity protect the retailer from legal issues and build trust with customers.

What Should You Do Now?

  1. Review your Terms and Conditions: Have your Terms and Conditions reviewed by an attorney to ensure they comply with current legal requirements.
  2. Clarity on the Conclusion of the Contract: Ensure that the point in time at which the contract is concluded is clearly defined in your Terms and Conditions.
  3. Specify concrete delivery times: Avoid vague delivery time estimates such as “approximately” or “from/to.” Specify concrete delivery times to avoid legal issues.

Conclusion

The ruling by the Nuremberg Higher Regional Court shows that transparency and clear communication are crucial for online stores. As a provider of online store systems, we support you in optimizing your payment practices to strengthen your customers’ trust.

We’re always available to provide more detailed information and support. Be sure to update your store system regularly to meet legal requirements and increase customer satisfaction. 

Our partners janolaw, IT-Recht Kanzlei, and Händlerbund can help you address this challenge, and we also offer integrations with these providers within our store system. Depending on your contract, the legal documents in your store will be updated automatically.

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