Misleading advertising claims and data protection shortcomings at Immobilienscout24: Judgement of the Berlin Regional Court
On 15.09.2023, the Berlin Regional Court (Case No. 52 O 65/23) reviewed key aspects of the advertising and data protection practices of Immobilienscout24, a well-known real estate portal, from a legal perspective. The focus was particularly on the so-called credit check for prospective tenants and the associated information obligations, as well as data protection issues related to data transmission. The following analysis examines the court’s decision from a civil law perspective and classifies its significance for market participants and end consumers.
Background of the proceedings
Facts and matters in dispute
Immobilienscout24 offered prospective tenants a paid credit check. As part of this offer, claims such as “With the credit check you convince landlords of your ability to pay” were used in advertising. Consumer protection associations criticized the use of these advertising statements, arguing that they could create a misleading impression regarding the reliability of the credit check. At the same time, deficiencies in the handling of users’ personal data were criticized, especially regarding the transmission of data to third parties, as well as transparency and safeguards during the online credit check process.
The key legal issues
The decisive legal issues concerned:
- The admissibility of advertising statements in light of the prohibition on misleading claims (§ 5 UWG)
- The fulfillment of statutory information obligations toward consumers, in particular under Art. 13 GDPR and §§ 312d, 312j BGB
- The compliance with data protection documentation requirements and the principles of data processing under the GDPR
The central considerations of the court
Misleading advertising
The court determined that the advertising slogans used by Immobilienscout24 failed to provide essential information about the actual significance of the credit check. It was suggested that the service offered an objective and comprehensive assessment of the prospective tenant’s creditworthiness and provided landlords with a reliable basis for decision-making. In reality, however, the information was based solely on reports from selected credit agencies and did not capture all information relevant to creditworthiness.
According to the court, this amounts to a factual assertion that does not correspond to the true scope of the credit check. In the court’s opinion, the design of the advertisement violates § 5 UWG, which prohibits misleading omissions of essential information as well as exaggerations.
Data protection deficiencies
With regard to data protection, the Regional Court identified significant deficiencies. From the court’s point of view, users were not adequately informed about the type and scope of data processing. Of particular concern was the fact that the credit check required the transmission of personal data to external companies or credit information services—without the data subjects being transparently informed about the recipients, purposes of use, and their data subject rights.
The court attached great importance to compliance with the obligations under Art. 13 GDPR. Breach of these obligations can lead not only to potential fines but can also affect contractual relationships with consumers and trigger liability within internal relations.
Legal consequences and effects on the market
The Regional Court prohibited Immobilienscout24 from further using the contested advertising statements and from continuing to process and transmit personal data without the required data protection information and consents from data subjects. The decision aligns with a series of recent rulings that raise the level of protection for consumers in digital service offerings while simultaneously posing new challenges for providers in structuring their services.
Implications for companies
Requirements for advertising statements regarding credit information
The decision demonstrates that companies must provide the greatest possible transparency when designing creditworthiness disclosures. The effect of the advertising must not exceed the actual reliability of the service. If credit information is offered via online platforms, comprehensive and accurate information for users is essential in order to ensure the principle of informed decision-making.
Data protection and information obligations – civil and regulatory requirements
In connection with credit checks, all processing steps must be explained clearly and understandably to the data subjects. In addition to transparent presentation of recipients and purposes, it must be ensured that users are able to effectively exercise their rights against the provider. Violations of data protection requirements can result not only in regulatory measures, but also have consequences under competition law.
Conclusion and outlook
The judgement of the Berlin Regional Court highlights that both competition law and data protection law must be given considerable attention in digital business models. Companies that process and advertise consumer information should carefully ensure that all information is clear, accurate, and complete. Particular restraint regarding advertising exaggerations is required, especially in sensitive areas like credit assessments.
At the same time, the decision makes it clear that not only regulatory, but also civil law actions for misleading advertising and data protection violations can have significant consequences for providers of digital services.
The proceedings were decided on the basis of the facts and legal situation known at the time of the judgment; it remains subject to any final decision by appellate courts.
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Sources: Berlin Regional Court, judgment of 15.09.2023 – 52 O 65/23, available at https://urteile.news/Landgericht-Berlin-II_52-O-6523_Irrefuehrende-Werbung-fuer-Bonitaets-Check-und-mangelnder-Datenschutz-bei-Immobilienscout24~N35393
If there are uncertainties when implementing advertising measures or processing personal data, an individual legal assessment may be advisable. MTR Legal Rechtsanwalt is available to provide further legal support regarding questions about competition and data protection law requirements in the digital sector.
