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Rechtsanwalt Marian Härtel - ITMediaLaw

GTCs are not invalid solely because of their length!

7. November 2022
in Competition law, Law on the Internet
Reading Time: 2 mins read
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Alena Piatrova | Shutterstock

Alena Piatrova | Shutterstock

Key Facts
  • The legal effects of general terms and conditions and data protection declarations are enormous, even though they are rarely read.
  • The Federation of German Consumer Organizations lost its dispute over PayPal's general terms and conditions in Cologne.
  • The T&Cs were criticized for being incomprehensible and too long; a reader needs around 80 minutes to read them.
  • The Cologne Higher Regional Court confirmed the judgment of the Regional Court and dismissed the appeal.
  • The scope of the GTC was not considered unreasonable as several parties are involved.
  • The comprehensibility index was not sufficient to classify the GTC as inadmissible.
  • Individual clauses in the overall work were not sufficient to completely prohibit the GTC.

There are two types of legal texts that almost no one reads, but they can have enormous legal effects. Terms and conditions and privacy policy.

It is often criticized that general terms and conditions are much too long for a normal person, let alone a legally uneducated person, to read or understand.

In the dispute over the legality of PayPal’s General Terms and Conditions, however, the Federation of German Consumer Organizations also lost in the second instance before the 6th Civil Senate of the Cologne Higher Regional Court. The vzbv had applied to prohibit the payment service provider in Germany from using its – in the meantime slightly amended and shortened – general terms and conditions vis-à-vis consumers.

The Federation of German Consumer Organizations (Verbraucherzentrale Bundesverband) had claimed that the defendant’s GTCs were incomprehensible in their entirety and considerably too long. It takes an average reader about 80 minutes to read, he said. It was therefore unreasonable to expect consumers to obtain knowledge of the content of the regulations.

The 6th Civil Senate of the Cologne Higher Regional Court, however, dismissed the appeal and upheld the judgment of the Cologne Regional Court dismissing the action. In its reasoning, the Senate essentially stated that it may constitute a violation of the so-called transparency requirement if the general terms and conditions exceed a reasonable scope in relation to the significance of the transaction. However, it had not been shown that the scope of the defendant’s GTC was unreasonable.

In this respect, the considerable number of 83 pages in printed form alone could not be taken as a basis. Rather, it had to be taken into account that the GTC enabled the processing of a payment between five different persons. In addition to the payer, the payee and PayPal, banks and credit card companies may also be involved in a payment transaction. Moreover, the consumer could not only be in the role of the payer, but also – for example in the case of refunds – in the role of the payee.

The reference to the evaluation by means of an “intelligibility index” was not sufficiently substantiated. This is because the question of whether general terms and conditions are unlawful in their entirety depends on numerous factors that cannot be reflected in the context of a blanket index. For example, the use of foreign words could also be permissible if they are sufficiently explained. Insofar as the vzbv had named individual clauses which in its view were superfluous, this was not sufficient to prohibit the General Terms and Conditions in their entirety on the grounds that reading them was unreasonable. The designation of a few clauses in the context of the overall work was not sufficient for this purpose.

 

Marian Härtel
Author: Marian Härtel

Marian Härtel ist Rechtsanwalt und Fachanwalt für IT-Recht mit einer über 25-jährigen Erfahrung als Unternehmer und Berater in den Bereichen Games, E-Sport, Blockchain, SaaS und Künstliche Intelligenz. Seine Beratungsschwerpunkte umfassen neben dem IT-Recht insbesondere das Urheberrecht, Medienrecht sowie Wettbewerbsrecht. Er betreut schwerpunktmäßig Start-ups, Agenturen und Influencer, die er in strategischen Fragen, komplexen Vertragsangelegenheiten sowie bei Investitionsprojekten begleitet. Dabei zeichnet sich seine Beratung durch einen interdisziplinären Ansatz aus, der juristische Expertise und langjährige unternehmerische Erfahrung miteinander verbindet. Ziel seiner Tätigkeit ist stets, Mandanten praxisorientierte Lösungen anzubieten und rechtlich fundierte Unterstützung bei der Umsetzung innovativer Geschäftsmodelle zu gewährleisten.

Tags: AGBBankConsumerConsumer CenterCredit cardGeneral Terms and ConditionsLawsuitPrivacy

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  • Informationen
    • Ideal partner
    • About lawyer Marian Härtel
    • Quick and flexible access
    • Principles as a lawyer
    • Why a lawyer and business consultant?
    • Focus areas of attorney Marian Härtel
      • Focus on start-ups
      • Investment advice
      • Corporate law
      • Cryptocurrencies, Blockchain and Games
      • AI and SaaS
      • Streamers and influencers
      • Games and esports law
      • IT/IP Law
      • Law firm for GMBH,UG, GbR
      • Law firm for IT/IP and media law
    • The everyday life of an IT lawyer
    • How can I help clients?
    • Testimonials
    • Team: Saskia Härtel – WHO AM I?
    • Agile and lean law firm
    • Price overview
    • Various information
      • Terms
      • Privacy policy
      • Imprint
  • Services
    • Support and advice of agencies
    • Contract review and preparation
    • Games law consulting
    • Consulting for influencers and streamers
    • Advice in e-commerce
    • DLT and Blockchain consulting
    • Legal advice in corporate law: from incorporation to structuring
    • Legal compliance and expert opinions
    • Outsourcing – for companies or law firms
    • Booking as speaker
  • News
    • Gloss / Opinion
    • Law on the Internet
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    • Law and computer games
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    • Blockchain and web law
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