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28 Oct 2024 What does 'order' on the order button of online shops really mean according to the Supreme Court?

Online shopping seems simple: one click on the "order" button, and the purchase is finished. But what if this button doesn’t meet legal requirements? A recent Supreme Court ruling clarifies this: clicking an "order" button is not enough to bind a consumer to a payment obligation. This article explores what this means for both online retailers and consumers.

The case in a nutshell

On 4 October 2024, the ruling. ruled that the word "order" on an order button is insufficient to impose a payment obligation on consumers. This ruling followed a case involving a consumer who placed an order on bol.com without paying for it, leading the retailer to seek payment enforcement through the subdistrict court.

The subdistrict court presented preliminary questions to the Supreme Court about the validity of such an order button. The central question: does an order button labeled solely with "order" clearly indicate a payment obligation?

The Supreme Court’s Ruling

According to the Supreme Court, the language on an order button must explicitly inform the consumer that clicking it initiates a payment obligation. European consumer law requires that such obligations be communicated clearly to prevent consumers from unintentionally committing to purchases with financial consequences. Terms like "order" or "place order" do not satisfy this requirement, the Court ruled.

The importance of clear language

In its ruling, the Supreme Court emphasized that consumers must be fully and unambiguously informed of their obligations when making online purchases. The term "order," the Court noted, may be perceived as nonbinding and without obligation. It should not imply merely placing an order without making it clear that there is also an associated payment obligation.

Online retailers are therefore advised to rephrase their order buttons to clarify that a payment obligation is involved. An example is "order with payment obligation." This avoids ambiguity and minimizes potential legal disputes.

Annulment of the agreement and other consequences

This ruling has significant implications for online shops. If an order button does not meet the legal requirements - such as using terms like "order," "place order," or "complete order" - the purchase contract may be annulled either fully or partially.

In cases of full annulment, all obligations of both parties are voided, meaning the consumer must return the product or stop using the service, while the retailer must refund any payments received. In case of partial annulment, the court may grant a reduction in the amount to be paid.

Lessons for online retailers

For online retailers, it is crucial to ensure the order button complies with legal standards. A straightforward adjustment, such as using "order with payment obligation," can prevent significant issues.

If you would like to verify whether your order button’s wording meets these legal requirements, please feel free to contact SPEE advocaten & mediation. We’d be happy to review it with you.

SPEE advocaten & mediation Maastricht