OGH: Several Terms and Conditions Clauses in Amazon Prime Invalid

According to consumer advocates, the main issues were membership fees, payment methods, and the right of withdrawal. The Supreme Court (OGH) has now ruled six out of eight contested clauses as illegal, the VKI announced on Tuesday.

One of the clauses deemed inadmissible by the OGH included a non-transparent regulation regarding the right of withdrawal for online contract conclusions. According to the consumer protection association, it stipulated how a withdrawal should be carried out, namely by consumers changing the membership settings under "My Account," contacting customer service, or using the model withdrawal form. "If consumers conclude a contract online, they can - according to consumer protection regulations - withdraw from it without formality," explains VKI lawyer Joachim Kogelmann. "Such a withdrawal is therefore also possible verbally or in an informal email." The clause deemed inadmissible by the OGH did not mention that other forms of withdrawal were also permissible, leaving consumers unclear about their legal position.

Amazon Prime: Change Payment Method or Membership

According to VKI, a clause was also deemed inadmissible, which stated that Amazon may automatically charge another stored payment method without separate notification if payments fail. Since using another payment method could potentially incur additional costs, such as in the case of an overdraft, the OGH saw this as a "gross disadvantage."

The OGH further deemed a clause inadmissible, which allowed Amazon to terminate the membership - also without separate notification - if payments fail and consumers do not provide a new payment method within 30 days. Amazon argued that in the "mass business," it would represent a significant administrative burden to dissolve each contractual relationship individually. The OGH countered this by stating that Amazon could "simplify the internal administrative burden with the help of a standardized internal process."

Mass Business with Advantages and Disadvantages

"Whoever, as a company, enjoys the advantages that result from contract conclusions in mass business, must also design the internal processes and systems in such a way that the accompanying disadvantages are balanced and not passed on to the consumers," emphasized the VKI lawyer.

With the paid membership program "Amazon Prime," Amazon offers, according to VKI, various additional services, such as fast shipping of items in distance selling without additional costs or various digital services. The basis for participating in the program is the General Terms and Conditions referred to as "Amazon Prime Terms and Conditions."

OGH: Two Clauses Permissible

Two of the eight contested clauses were deemed permissible by the OGH. Unlike the OLG Vienna, it assessed the information passage on membership fees, models, and durations of membership as not unlawful. The clause merely provides information from which neither rights nor obligations for consumers arise, explained Kogelmann upon APA inquiry.

The second clause, which the OGH considered permissible, concerns the refund of the membership fee under certain conditions. In summary, the OGH sees an opacity in the first two sentences, but the clause provides a regulation more favorable to the consumer side, which is why it was judged as "not impermissible." It is "not an impermissible clause, the use of which the defendant would have to refrain from," according to the OGH.

"The current Prime Terms and Conditions for customers in Austria comply with the OGH decision," a company spokeswoman announced Tuesday afternoon.

(APA/Red)

This article has been automatically translated, read the original article here.