Vienna (OTS) –On behalf of the Ministry of Social Affairs, the Association for Consumer Information (VKI) had sued DAZN Limited (DAZN), based in London, because of inadmissible clauses in the general terms and conditions. DAZN is a leading provider of online services for broadcasting sporting events. The VKI objected to 15 clauses from the terms of use. The Vienna Commercial Court (HG Vienna) has now declared all 15 contested clauses to be inadmissible. The judgment primarily concerns inadmissible price increase and contract change clauses. The verdict is not yet legally binding.
DAZN’s streaming offering consists exclusively of sports content. With DAZN’s streaming offer, after taking out a subscription, customers can watch live sports broadcasts, time-delayed recorded sports events as well as recaps of sporting events and sports documentaries on internet-enabled devices – for different sports, such as football, basketball and mixed martial arts Arts (MMA) and many more. DAZN currently offers customers two subscription models: one with a minimum contract term of one year with subsequent flexible cancellation with a notice period of 30 days for 19.99 euros per month and one with a minimum contract term of one month, which can be canceled monthly at any time and Costs 29.99 euros per month.
The HG Vienna judged, among other things, a clause to be inadmissible that allowed DAZN to “adjust the membership price to changing market conditions”. The court ruled that this clause provided for an unlimited price increase without specifying comprehensible parameters and/or limitations for the price increases. The “valuation bases” named in the clause, such as “wage costs,” “administrative costs” or costs for “customer service and other sales costs,” either only concern internal company information or are described too unclearly.
Another price adjustment clause was based on the German consumer price index (CPI) without containing a corresponding obligation to reduce prices. In addition, according to HG Vienna, Austrian customers do not have to expect that a German consumer price index will be used for price adjustments.
Another clause stipulated that consumer silence should be considered consent in the event of certain price increases. However, the requirements of the Consumer Protection Act (KSchG) were not adhered to. This stipulates that consumers must be made aware of the importance of silence again at the beginning of the intended (objection and termination) period.
“Especially in times when all streaming providers are constantly increasing their prices, the ruling is a signal to the industry to pay attention to legally compliant price adjustment clauses,” comments Dr. Joachim Kogelmann, lawyer at VKI. “Price increases are of course not possible without restrictions.”
SERVICE: Further information at www.verbraucherrecht.at/DAZN012024.
Questions & Contact:
Consumer Information Association Press office +43 664 231 44 81 presse@vki.at www.vki.at
