(CJEU) Contract by electronic means: in order to be validly bound by such a contract, consumers must clearly understand on the basis only of the words appearing on the ordering button that as soon they click on that button they will be under an obligation to pay

Date of article: 07/04/2022

Daily News of: 12/04/2022

Country:  EUROPE

Author: Court of Justice of the European Union

Article language: en

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Contract by electronic means: in order to be validly bound by such a contract, consumers must clearly understand on the basis only of the words appearing on the ordering button that as soon they click on that button they will be under an obligation to pay

Fuhrmann-2 is a company governed by German law and the proprietor of the Goldener Anker hotel in Krummhörn-Greetsiel (Germany). The rooms of that hotel can be rented, inter alia, through the www.booking.com website, an online accommodation booking platform. On 19 July 2018, B., a consumer, visited that website to search for hotel rooms in Krummhörn-Greetsiel for the period from 28 May 2019 to 2 June 2019. The search results displayed included rooms in the Goldener Anker hotel. B. then clicked on the image corresponding to that hotel, whereupon the available rooms were displayed together with additional information relating, inter alia, to the facilities and prices offered by that hotel for the selected period. Having decided to book four double rooms at that hotel, B. clicked on the ‘I’ll reserve’ button and entered his personal details and the names of the individuals accompanying him, before clicking on a button labelled with the words ‘complete booking’. B. did not appear at the Goldener Anker hotel on 28 May 2019.

Fuhrmann-2 invoiced B., in accordance with its general terms and conditions, for cancellation fees of €2 240, setting him a time limit of five working days for settlement of that sum. B. did not pay the sum claimed. Fuhrmann-2 therefore brought an action for recovery of that sum before the Local Court, Bottrop (Germany).

That court asked the Court of Justice whether, in the context of an ordering process relating to the conclusion of a distance contract by electronic means, for the purpose of determining whether a form of words displayed on the ordering button or on a similar function, such as the formulation ‘complete booking’, is a formulation ‘corresponding’ to the words ‘order with obligation to pay’, only the words that appear on that button should be taken into account, or whether the overall circumstances of the ordering process should also be taken into consideration.

In its judgment delivered today, the Court notes that, according to Directive 2011/83, 1 where a distance contract is concluded by electronic means through an ordering process and entails an obligation on the part of the consumer to pay, the trader must, first, provide that consumer, directly before the placing of the order, with the essential information relating to the contract and, secondly, explicitly inform that consumer that, in placing the order, he or she is bound by an obligation to pay.

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