Mittwoch, 24.11.2021
New long catalog of fines for companies with consumer contact
From May 28, 2022, fines of a similar amount to those for violating the GDPR will be imposed.
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Dr. jur. Dirk LindloffLawyer
Specialist lawyer for intellectual property law
Specialist lawyer for information technology law
Give me a call: 0261 - 404 99 45
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Elmar Kloss
Lawyer
Specialist lawyer for intellectual property law
Specialist lawyer for information technology law
Give me a call: 0261 - 404 99 45
E-Mail:
Dr. jur. Ingo E. Fromm
Lawyer
Specialist in criminal law
Specialist in traffic law
Give me a call: 0261 - 404 99 25
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Every company that concludes contracts with consumers will have to review their terms and conditions and their behavior in dealing with consumers by May 28, 2022. On this day, a new regulation will come into force that can lead to similar fines as violations of the General Data Protection Regulation (GDPR). It can cost up to 4% of annual sales if you do not behave legally towards consumers as prescribed.
The list of behaviors that can lead to a fine is long. For example, certain clauses may not be included in the terms and conditions, including popular provisions such as those regarding duration, termination, rights to refuse performance, prohibitions on offsetting or exclusions of liability. There are also sanctions for not providing consumers with all the mandatory information, and this applies not only to online transactions. In the offline sector in particular, the existing provisions on information requirements have often been ignored.
Insufficient fee agreements can also lead to a fine. When it comes to contract execution, fee-based hotlines are sanctioned just as much as if the entrepreneur fails to deliver purchased goods within 30 days or at the latest within a reasonable period set by the consumer.
In the online area, it is also about sending copies or confirmations, but also about how an online shop is designed, because some mandatory information must be available in certain places. If a consumer withdraws from a contract, in the future more attention will have to be paid to handling the consequences properly, for example, confirming receipt of the declaration of withdrawal in the prescribed form and processing the repayment within the deadlines provided by law.
At the same time, new obligations will be introduced for online marketplaces, and compliance with these will be subject to fines.
Overall, these fines are imposed regardless of whether a consumer has been harmed. The fines are imposed solely for improper behavior or the incorrect formulation of terms and conditions. The maximum fine of 4% of the company's turnover applies to the company itself. Those within the company who are responsible for the unlawful behavior "only" have to fear a personal fine of up to €50,000.
The statements represent initial information that was current for the law applicable in Germany at the time of initial publication. The legal situation may have changed since then. Furthermore, the information provided cannot replace individual advice on a specific matter. Please contact us for this purpose.