January 14, 2019
A lawsuit was successfully filed by consumer centre, NRW, against Amazon EU Sarl in the Higher Regional Court Munich, with the case revolving around the Amazon Dash button.
As verbraucherzentrale reports, the Amazon Dash button “massively” violates laws as customers were “not sufficiently informed about the ordered commodity and their price.”
The purpose of the Dash button is to automatically reorder household products “for everyday use”, which may occur months after the initial product selection. However, users who “do not have app at hand” may not be aware that Amazon “reserves the terms and conditions to ask for a different price or even to deliver a different product than originally selected by the user.”
However, the price and specific product information are “legally required” before purchase, and the Dash button should make it clear through labelling before the order is made rather than after.
As a result of these failings, NRW brought the case against Amazon EU Sarl and won, with the judges stating that “Amazon must inform the customer immediately before sending the order about the price” and the details of the goods actually being ordered.
With its verdict, the “illegal functioning” of the Amazon Dash button was confirmed; as a result, Amazon will have to make the service “legally compliant”.
“We are always open to innovation,” says Consumer Bureau Chief Wolfgang Schuldzinski: “But if innovation is to put consumers at a disadvantage and to make price comparisons more difficult, then we use all means against them, as in this case.”
Categories : Around the Industry