Corona crisis and consumer law
The Corona crisis has had far-reaching effects on almost all areas of society, in particular on consumer law. As a result of the COVID-19 pandemic, many private and commercial contracts had to be adjusted or suspended, government regulations came into effect, and numerous disputes arose in connection with refund claims, performance disruptions, and contract performance. The following article sheds light on the comprehensive legal issues of consumer law in the context of the Corona crisis, lists relevant changes and transitional provisions, and explains the implications for consumers and businesses.
General impact of the Corona crisis on consumer law
Starting in March 2020, the Corona pandemic led to unprecedented restrictions in public and economic life. This had immediate consequences for existing and new contractual relationships between companies and private consumers. Legislative measures at the national and European level were created to resolve short-term conflicts between the interests of providers and buyers.
- Closures and bans: Numerous shops, venues, leisure facilities, and restaurants were temporarily closed. This resulted in a multitude of contract disruptions.
- Supply interruptions and impossibility of performance: Global supply chains were often disrupted, and services could often not be provided or used.
Legal foundations
General law of obligations (BGB)
The German Civil Code contains the fundamental provisions on contract performance and adjustment in case of disruptions. Key regulations are:
- Impossibility of performance (§ 275 BGB): If the debtor cannot perform due to force majeure (e.g., general ban on events), the obligation lapses.
- Default of the debtor (§ 286 BGB): Delivery delays caused by Corona-related restrictions are often not culpable, so default generally does not occur.
- Frustration of contract basis (§ 313 BGB): In exceptional cases, contracting parties may demand contract adjustment if circumstances have changed significantly after conclusion of the contract.
Special consumer protection provisions
The pandemic prompted the legislator to introduce special, in some cases temporary, provisions:
- Article 240 Introductory Act to the BGB (EGBGB): Temporary protection against performance disruptions and terminations, in particular in continuous obligations (e.g. electricity, gas, telecommunication).
- Special regulations on package tours, events, and leisure contracts
Special features in relevant areas of life
Package travel, flight and accommodation contracts
The temporary entry and exit restrictions as well as massive limitations on travel led to mass cancellations of package tours and flights.
- Right of withdrawal in case of travel cancellation
Consumers were able to withdraw from the contract free of charge due to exceptional circumstances (Art. 250 §§ 651h, 651i BGB).
- Obligation to refund
In the event of cancellation by the organizer, there is a right to full reimbursement within 14 days. Voucher solutions, which the legislator temporarily allowed, were offered as a voluntary alternative.
- Air passenger rights
Airlines were generally required to refund the full ticket cost in the event of flight cancellations (EU Air Passenger Rights Regulation).
Event contracts, leisure, and sports facilities
Cancellations of cultural events, concerts, trade fairs and the closures of all leisure facilities raised specific questions.
- Voucher solution for canceled events (§ 5 para. 1 COVID-19 Act):
Event organizers could issue vouchers to customers instead of a refund, though there was a right to a payout in cases of particular hardship.
- Membership fees
In the case of temporary closures of fitness studios or swimming pools, the service relationship was often suspended, resulting in a right to a credit or extension.
Tenancy law issues
Adjustments to protect consumers were also adopted in tenancy law.
- Exclusion of termination in the event of pandemic-related payment arrears
Tenants could not be terminated between April 1 and June 30, 2020 due to missed rent payments caused by the pandemic, provided the arrears were settled by June 30, 2022.
- Contract extensions and negotiations
In some cases, contract adjustment was chosen as a milder measure.
Consumer credit agreements and financial relief
Many consumers faced payment difficulties as a result of short-time work or unemployment. To mitigate the consequences, the legislator passed the following special regulations:
- Deferral of credit agreements (§ 3 COVID-19 Act):
Payment obligations under ongoing consumer loan agreements due between April 1 and June 30, 2020 could be deferred for three months upon application, without incurring default interest or reminder fees.
- Right of termination
During the deferral period, the lender had no right of termination for this reason.
E-commerce, delivery delays and contract performance
Since the beginning of the pandemic, online commerce has become increasingly important. Delivery bottlenecks and extended shipping times led to changed conditions for consumers.
- Delivery delays and impediments to performance
In the case of significant delivery delays, the buyer is generally entitled to withdraw from the contract and receive a refund, provided the goods are not delivered even after a reasonable extension period.
- Right of withdrawal in distance selling
The statutory right of withdrawal remained unaffected; no special exceptions were created.
Warranty and withdrawal rights
The general regulations continued to apply for withdrawal from purchase contracts and the enforcement of warranty rights.
- Warranty rights (§§ 434 ff. BGB):
Defects resulting from delayed delivery or non-performance due to pandemic measures may entitle to withdrawal, reduction, or compensation.
- Question of fault:
In the event of obstacles to performance, companies were often able to successfully invoke force majeure; specific circumstances of each case were decisive.
Data protection and Corona app
The digital measures introduced during the Corona crisis (in particular the Corona Warning App) raised data protection issues.
- Personal data and consent:
For the use of the Corona Warning App, the principles of voluntariness and data minimization applied. Processing of personal health data was only possible with explicit consent.
- Information obligations:
Operators were required to inform extensively about data processing; measures were aligned with the General Data Protection Regulation (GDPR).
Government support and relief measures for consumers
To mitigate the social and economic consequences, comprehensive rescue packages and relief measures were created.
- Short-time work benefits, unemployment benefits:
Simplified access and extended periods of entitlement helped consumers meet ongoing obligations.
- Support payments, housing allowance:
Improved entitlements to housing allowance and social benefits facilitated securing livelihoods.
Literature and further sources
- Federal Ministry of Justice: Laws mitigating the consequences of the COVID-19 pandemic in civil, insolvency, and criminal procedural law
- European Commission: Consumer rights during Corona
- German Center for Consumer Protection: Corona and consumer contracts
Conclusion
The Corona crisis has significantly influenced consumer law in Germany. Many legislative emergency measures responded flexibly to the challenges posed by the pandemic. At the forefront were consumer protection, a balanced adjustment of interests between contracting parties, and the prevention of existential hardships. The legal consequences will in part extend beyond the pandemic and will shape the interpretation of important consumer rights in the future.
Frequently asked questions
Can I cancel events already booked due to the Corona crisis and reclaim my money?
Whether, as a consumer, you have the right to free cancellation and a refund of the ticket price depends on the specific individual case. If the event was cancelled as a result of official orders to combat the Corona pandemic, this is a case of so-called “impossibility of performance” (§ 275 BGB). The organizer can no longer provide their service (holding the event). In this case, the obligation to provide counterperformance expires, so you are generally entitled to a refund of the paid price (§ 326 BGB). Instead of a refund, organizers can offer a voucher (voucher solution according to Art. 240 § 5 EGBGB), but in certain cases, such as unreasonable hardship, you may insist on a payout. If the event was postponed, the situation is more complicated: consumers can generally insist on performance on the new date, but if legitimate interests are present, they also have a right to a refund. Unilateral cancellation for events not cancelled by authorities is only possible according to the organizer’s cancellation conditions or in the case of significant changes.
Do I have a right to a full refund if a package holiday is cancelled due to the pandemic?
If a package holiday is cancelled due to the Corona crisis, for example as a result of travel restrictions or official orders, § 651h BGB applies. The traveller can cancel the contract at any time before the start of the trip; in the case of “unavoidable, exceptional circumstances” (such as the Corona pandemic), this remains free of charge for the traveller. The tour operator is then obliged to refund the paid travel price in full within 14 days. This also applies if the organizer cancels the trip. There is no claim to a voucher only; the customer can insist on a payout. A reduction of the refund amount due to costs already incurred is not permitted. Only voluntary voucher arrangements or rebooking offers can be accepted, but the consumer is not obliged to do so.
Can gym members reclaim their fees due to closures related to Corona?
If the gym was closed by official order, consumers are entitled to reimbursement of fees already paid for the period during which the service could not be provided. According to § 275 BGB, this constitutes a temporary impossibility of performance, since the gym cannot provide the contractually agreed services (use of the sports facilities). Fees already paid for the closure period can be reclaimed. However, in 2020, gyms were allowed to offer their members a voucher in accordance with the voucher solution (Art. 240 § 5 EGBGB). This no longer applies to later closures. A right to contract extension instead of a refund only exists if the consumer agrees.
How does the Corona pandemic affect rent payments and terminations?
At the beginning of the Corona crisis, a temporary protection against termination (§ 2 of the COVID-19 Act) for tenancy agreements (residential and commercial) was introduced. Between April and June 2020, tenants who were unable to pay rent due to the pandemic could not be terminated solely due to payment arrears. This protection has now expired; tenants currently have no further right to deferment or protection from termination if the rent is not paid due to the pandemic. However, it can be examined in individual cases whether the Corona crisis entitles the tenant to extraordinary termination without notice (e.g. in case of significant loss of use) or whether a rent reduction is possible. These claims must, however, be substantiated on a case-by-case basis.
Can consumers withdraw from the contract due to delivery delays during the Corona pandemic?
Delivery delays due to Corona-related restrictions (for example, disrupted supply chains or closed production sites) can entitle to withdrawal. The prerequisite is that the originally agreed delivery period has been exceeded and the seller does not deliver even after a reasonable additional period (§§ 323, 326 BGB). If the seller is not responsible for the delay (force majeure/pandemic), this releases them from compensation claims, but not from the buyer’s right of withdrawal. After an unsuccessful expiration of the additional period, the buyer can withdraw from the contract and reclaim any payments made. However, an extension of the delivery period can be agreed upon, and the seller must promptly inform about any delays.
Do I have to pay for a hotel room if travel is not possible due to Corona?
If your arrival is not possible due to official travel restrictions or quarantine orders, your entitlement to a refund of the room price depends on who is responsible for the impossibility. If the hotel is open and you cannot arrive for personal reasons, the usual cancellation rules apply. However, if accommodation is not possible due to local Corona measures or if the hotel is closed, consumers do not have to pay for services not received (§ 275, § 326 BGB). For pure bookings without additional services, the hotel may insist on contract fulfillment if there is no official ban and the hotel is open.
Do online orders still have the usual rights of withdrawal during the pandemic?
Yes, the statutory rights of withdrawal for online purchases pursuant to §§ 312g, 355ff. BGB continue to apply without restriction. The Corona crisis has not resulted in any legal changes to consumer rights in online shopping. Therefore, as a rule, you may withdraw from the contract within 14 days of receiving the goods and return the goods without giving reasons. The deadlines may only be delayed for practical reasons (for example, longer shipping times or more difficult returns) — legally, however, your right of withdrawal remains unchanged. Only additional goodwill arrangements by some merchants are possible, but they are not legally required.
