Federal Supreme Court Ruling of September 11, 2025 – Case No. I ZR 14/23
Payment methods are more than just the way ordered goods can be paid for. They can also have an advertising effect, as the Federal Supreme Court stated in its ruling of September 11, 2025 (Case No. I ZR 14/23). Different procedures such as the TAN procedure in online banking or the NFC procedure in mobile payment are used in the payment process, playing an important role in the security of transactions. The fees incurred are also a relevant aspect that merchants and customers should consider when selecting and promoting payment methods. For example, advertising with a “convenient purchase on account” can constitute a violation of competition law if the conditions for this payment method are not clearly visible to the consumer.
With this decision, the BGH has tightened the transparency obligations in online commerce. Anyone who advertises, for example, a “convenient payment method” or other benefits must inform consumers of the conditions for these early on and not only during the ordering process. An example of misleading advertising would be if an online shop advertises “free credit card payment” but suddenly charges additional fees during the ordering process. In such cases, consumers are disadvantaged because they rely on the advertised payment method and only learn of hidden costs or restrictions late. Otherwise, a violation of information obligations may exist, according to the law firm MTR Legal Rechtsanwälte, which advises, among others, in IT law.
Introduction to Online Commerce
Online commerce, also known as e-commerce, has developed in recent years into one of the key pillars of modern trade. Due to digitalization and the constant availability of the Internet, the traditional boundaries of retail have almost been eliminated. Customers can now conveniently order and pay for goods and services from home or on the go – regardless of opening hours or location. This new form of trade offers a variety of possibilities for both customers and companies.
An essential aspect of e-commerce is the variety of available payment methods. Whether credit card, direct debit, or other modern payment systems – the range of payment methods is large and significantly contributes to the popularity of online commerce. Customers appreciate the flexibility with which they can pay for their purchases, and companies benefit from the opportunity to offer their goods to a broad customer base. The importance of online commerce continues to grow as more and more people discover the advantages of convenient and secure online shopping.
Promotional Highlighting of Payment Methods
The present case concerned the question of the extent to which online merchants are allowed to promote payment methods such as purchase on account without misleading consumers. A large online retailer advertised with the slogan “Convenient purchase on account.” However, it did not clearly inform upfront that a credit check was required. The Consumer Advice Center Hamburg saw this as misleading consumers. They argued that the statement was misleading because purchase on account is actually only offered under certain conditions – especially after a credit check. Consumers could assume from the advertising slogan that purchase on account was generally available to them without restrictions. As an example of another payment method that could also be advertised is cash on delivery, where customers pay upon delivery.
The retailer defended itself by stating that this was merely advertising and the reference to the credit check was clearly indicated during the ordering process. Also, with cash on delivery as an alternative payment method, certain conditions and additional fees may apply, which are relevant to the customer.
Sales Promotion through Payment Method
BGH Emphasizes Advertising Effect of Payment Methods in Online Commerce
After the lower courts dismissed the lawsuit, the case was brought before the Federal Supreme Court. The BGH overturned the decision of the appellate court and referred the case back for reconsideration. While it has not yet been finally decided whether the retailer’s advertising was impermissible, the BGH clarified the legal standards future decisions must follow. It made clear that advertising certain payment methods can generally constitute a form of sales promotion and is therefore subject to competition law rules.
The sale of products in both one’s own online shop and on a marketplace such as eBay or Amazon is the central goal when payment methods are highlighted. In addition to their own online shop, marketplaces offer merchants an alternative platform to present their products to a broader customer base.
In doing so, the BGH connects to a preliminary ruling by the European Court of Justice in the matter (Case No. C-100/24). According to this, highlighting a specific payment method, such as purchase on account, can count as a sales promotion offer if it suggests a recognizable benefit to the consumer that could influence their purchasing decision. Payment modalities are thus not only technical processes but can have significant advertising value.
Violation of Information Obligations
The BGH further stated that in the present case there is no misrepresentation of consumers according to § 5 UWG (Act against Unfair Competition). However, there could be a violation of the information obligations under § 5a UWG if essential information is withheld from the consumer that is necessary for an informed business decision. Whether a reservation such as the credit check in invoice purchase constitutes such essential information depends on whether this reservation is relevant to the purchasing decision. In this context, the requirement exists that transparency and timely information about the offered payment methods and payment modalities must be ensured so that consumers can make their decision based on all relevant information.
The timing and manner of information are particularly important, according to the BGH. The notice of a credit check must not appear late in the ordering process or in hard-to-find footnotes. If advertising creates the impression that a service is generally and unconditionally available, a restrictive note must be made clearly, understandably, and early. Subsequent information is usually not sufficient.
Online Shops and Their Importance
Online shops are the core of e-commerce and have fundamentally changed the way we shop. They allow customers to purchase products and services around the clock without having to leave their homes. For retailers, online shops offer the opportunity to market their goods and services not only locally but also nationally and internationally. Using an online shop opens up new ways for companies to reach their target audiences and expand their customer base.
Impact of Usability and Trust on Purchasing Behavior
The decision to make a purchase in an online shop is influenced by various factors: In addition to the variety of products and attractive prices, the offered payment methods, the quality of customer service, and transaction security play a crucial role. Customers benefit from the ability to easily compare prices and products, read reviews from other buyers, and gather comprehensive information before placing an order.
Benefits of Online Shops for Businesses and Consumers
For businesses, online retail offers numerous advantages. Through targeted marketing measures such as search engine optimization, social media, or email campaigns, they can present their products and services to a wide audience. Direct interaction with customers allows them to respond to wishes and requirements, thereby increasing customer satisfaction. At the same time, retailers can make their business processes more efficient through the use of online shops and tap into new markets.
Overall, online retail has sustainably changed the importance of retail trade. The ability to shop anytime and anywhere, the large selection of products, and the flexibility of payment make online shops an attractive alternative to brick-and-mortar retail. Companies that take advantage of the opportunities of e-commerce can successfully position themselves in the market and benefit from the diverse advantages of this form of trade.
Transparency in Online Retail
With the ruling, the BGH emphasized the central importance of transparent consumer communication in e-commerce. When advantages are highlighted, it must also be explained under which conditions these actually apply. Slogans emphasizing convenience, security, or special benefits pose a risk if they are not fully accurate and raise expectations in consumers that may be disappointed by subsequent conditions. Especially in the selection and communication of payment methods, retailers bear a special responsibility towards consumers to protect their rights and interests.
Following the BGH decision, online retailers should structure their communication so that consumers are clearly, understandably, and timely informed about restrictions. Otherwise, warnings, injunctions, and fines may threaten.
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