Jurisdiction(s):
European Union

CJEU on Article 8(2) CRD: 'order with obligation to pay' in distance contracts applies even to conditional payments; non-compliance leaves consumer unbound (VT, UR v Conny GmbH)

Published on: 10 June 2024

Published by a LexisNexis EU Law expert

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Article summary

VT, UR v Conny GmbH Case C-400/22

What are the practical implications of this case?

Traders and consumers using websites to conclude distance contracts should note that the trader’s duty to secure, at the moment of ordering, the consumer’s clear confirmation of a commitment to pay, as required by Article 8(2) of Directive 2011/83/EU, applies even where payment falls due only once a later condition is met.

These consequences carry particular weight for traders that, as in the case before the Court of Justice, operate assignment-based models to advance consumers’ rights, with remuneration owed only if certain triggers occur—for example, a wholly or partly successful assertion of rights, or another formal step towards that result.

Although the matter arises from a specific national context in which a trader offers to pursue tenancy-related entitlements, the knock-on effects are broader and touch any set-up where traders invite consumers to have their rights asserted...

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