The Netherlands Supreme Court has ruled that order buttons which do not clearly indicate a payment obligation violate consumer rights.
The Netherlands Supreme Court has ruled that order buttons must clearly indicate a payment obligation for consumers. This landmark decision highlighted that phrases such as “place order” or “complete order” are not sufficient and that such buttons could potentially violate consumer rights. The Supreme Court’s ruling could bring significant changes for online retailers, making compliance with EU Consumer Protection Laws mandatory.
“Place Order” is Not Enough
The Court emphasized that consumers may not associate such phrases with a payment obligation. Therefore, phrases like “place order” or “complete order” do not meet the EU consumer protection standards, which require consumers to be clearly informed of their payment obligation before completing the order. The Court underlined that these phrases do not sufficiently and clearly convey a payment obligation to the consumer. EU consumer legislation mandates that sellers must inform consumers clearly and prominently, right before they finalize their order.
Legal Risks Increase for Retailers
The Netherlands Supreme Court also pointed out the potential legal risks for online retailers using non-compliant order buttons. If an order button does not indicate a payment obligation, it may lead to invalid contracts and consumer complaints. These faulty order processes could expose retailers to unpaid invoices and related financial damages, increasing the risk of litigation.
The Bol.com Case Sets a Precedent
The ruling was based on a case involving a consumer who had placed multiple orders on Bol.com but did not make any payments. The button used in the order process displayed only the phrase “place order” (bestelling plaatsen), without clearly indicating a payment obligation. This became the consumer’s justification for non-payment and led Bol.com to initiate legal proceedings.
Implications of the Court’s Decision
The Court stated that, in such cases, consumers may request the contract to be annulled or partially annulled. If the consumer is not present in the proceedings, the Court may opt for a partial annulment. However, if the consumer opposes the annulment, the Court may issue a full annulment to protect consumer rights.
What Does This Mean for Retailers?
This ruling means that online retailers need to revise the texts on their order buttons. Consumers must see the payment obligation clearly before completing the order, and the button text must reflect this explicitly, such as “proceed to payment” or “complete order and pay.”
This new regulation aims to protect consumer rights and urges retailers to review their current practices. The decision also indicates an increased risk of litigation for non-compliant online retailers, highlighting the importance of adhering to consumer protection regulations.
The Netherlands Supreme Court’s ruling sets a significant precedent not only in the Netherlands but across the EU’s e-commerce sector. Retailers may have to update button texts to ensure compliance and safeguard consumer rights. This ruling is considered a crucial step towards enhancing transparency and strengthening consumer rights in online shopping.
