European Union: Issued Court of Justice ruling in lawsuit concerning labelling requirements of online order button (VT, UR v Conny GmbH)

On 30 May 2024, the Court of Justice of the European Union issued a ruling concerning a dispute between a debt recovery service provider and landlords over the lack of clear payment obligation information on the service provider's website (Case C-400/22). The case originated from a tenant in Germany who used the service to request repayment of rent overpayments, contingent upon the service's success in asserting the tenant's rights. The landlords contested the service provider's authorisation, highlighting the absence of an "order with obligation to pay" label on the order button, as mandated by the consumer rights directive. The Court determined that service providers must explicitly inform consumers of their payment obligations when placing orders online, regardless of whether payment is conditional. Failure to comply with this information requirement renders the consumer's order non-binding, although consumers may opt to confirm their orders subsequently.