A court in Germany handed down a harsh ruling about Amazon’s Dash buttons on Thursday, January 10, according to a report from Reuters.
The court stated the Dash buttons, which are small, Wi-Fi-connected devices that reorder items like laundry detergent and coffee, breaks consumer protection legislation because it doesn’t give consumers enough information about the product or its price. According to German law, a transaction must provide info on price and characteristics or delivery details.
Daniel Widmann, a technology law expert at Pinsent Masons, said in 2016 that this could cause trouble for the company. “There are further special obligations regarding consumers in electronic commerce,” he said. “A valid consumer contract is only concluded when the consumer explicitly confirms that he or she undertakes to make a payment. There should be unambiguous wording, such as ‘order and pay.’”
A regional consumer protection watchdog organization brought the case against Amazon, arguing that Dash buttons don’t let customers know what they’re paying. Wolfgang Schuldzinski, head of the consumer body, said his organization isn’t against new technology, and that the issue is that the buttons don’t give customers enough information.
“We are always open to innovation. But if innovation means that the consumer is put at a disadvantage and price comparisons are made difficult, then we fight that,” he said.
Amazon claimed the button was not against German law, and that it would fight the court’s decision through other available legal channels, since the court wouldn’t allow an appeal.
“Today’s ruling is not only hostile to innovation. It also stops customers from making an informed decision about whether a service like the Dash button gives them a convenient shopping experience,” an Amazon spokesperson said.
Germany is Amazon’s second biggest market behind the US, and the eCommerce company has faced hurdles there. In a different case, Amazon is being investigated by Germany’s antitrust authority about whether the company is taking advantage of its market position in terms of third-party sellers who use the site. It has also had to deal with a protracted fight with unions in Germany over pay and working conditions.
Full Content: PYMNTS
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
FTC to Approve Exxon’s $64 Billion Deal with Pioneer Resources, Excludes
May 1, 2024 by
CPI
UK Competition Watchdog Raises Alarm Over Nvidia’s ARM Takeover
May 1, 2024 by
CPI
Sen. Klobuchar Urges Regulators to Probe Collusion in Health Care Pricing
May 1, 2024 by
CPI
Multiple States Join Tennessee’s Antitrust Lawsuit Against NCAA Over NIL Rules
May 1, 2024 by
CPI
NY AG Joins Suit Challenging NCAA’s Restrictions on Student Athlete NIL Rights
May 1, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI