24.11.2006 – Intellectual Property, Competition & Communications, Rechtsprechung

Internet trade must comply with strict requirements of German law

The entrepreneur must conspicuously place revocation instructions addressed to consumers in internet auctions as links often do not provide further information on the seller (local court in Bielefeld, judgment of 8th October 2004 - file no. 17 O 160/04).

Valid revocation instructions require that the consumer is fully informed about his right of revocation while entering into an agreement. To satisfy this requirement, the respective auction offer should always contain full revocation instructions for each individual product offer.

In the context of an internet auction, businessmen are obliged to inform potential buyers fully about their right of revocation or right to return goods under section 312 d subsection 1 German Civil Code (Bürgerliches Gesetzbuch  -“BGB”).

This information requirement is not satisfied if

(i) the seller refers to such information under the button „information about the seller”; or
(ii) under the so-called „me“-button. 

In this case a consumer may only be informed about his rights by accident. The court held that this had been the intention of the seller: fulfilling the information obligation under “information about the seller" was obviously meant to place the revocation instruction inconspicuously. Such action would be unfair and in breach of section 4 no. 11 of the German Unfair Competition Act (Gesetz gegen den unlauteren Wettbewerb – “UWG”).