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North Rhine-Westphalia: Düsseldorf Higher Regional Court issues decision on Meta's pay or okay model
On February 8, 2024, the Düsseldorf Higher Regional Court issued its decision in case I-20 UKlaG 4/23, in which it partially upheld an injunction action by the North Rhine-Westphalia Consumer Center and prohibited Meta Platforms Ireland Limited from designing the ordering process for its paid ad-free use of the social networks Facebook and Instagram by triggering a button (order button) without a clear reference to a payable order.
Background to the decision
The Court stated that Meta had stipulated the sending of personalized advertising in its general terms and conditions, however, since November 2023, in addition to free use with advertising, there was an option of paid, ad-free use of the social services. Users could utilize these on the website by using the 'subscribe' order button and by using the 'proceed to payment' order button in the apps. The Consumer Center alleged that this was a violation of consumer protection law because the order buttons do not adequately indicate that a paid subscription contract will be concluded upon confirmation.
Findings of the Court
The Court held, among other things, that companies are legally obliged to label order buttons, i.e., buttons via which a contract is concluded with a consumer in electronic legal transactions, with clear wording such as 'order with obligation to pay.' The 'subscribe' order button did not do this justice, because there are also free subscriptions. Further, the Court stated that the 'proceed to payment' button also did not meet the statutory consumer protection requirements.
Finally, the Court noted that the judgment was final and it will soon be available in the case law database, only available in German, here.
You can read a summary of the decision, only available in German, here.