Sellers of used goods must clearly label these items as such. Failure to do so constitutes a violation of competition law and may result in warning letters.
The Case:
The Regional Court Munich I was tasked with a case concerning Amazon's offering of used smartphones for sale. Initially, the product information did not indicate that the smartphones were used goods. Amazon later updated the product information to include the designation “Refurbished Certificate.”
The Regional Court Munich I ruled that Amazon, by failing to explicitly indicate that the smartphones were used items, withheld essential information about a product characteristic crucial for the purchasing decision from its customers. The court stated that disclosing the used condition of the smartphone is necessary to enable the buyer to decide, before making a purchase, whether they wish to acquire a used smartphone.
The designation “Refurbished Certificate” was deemed insufficient for this purpose, as an average consumer would not recognize an item marked in this way as a used item.
Furthermore, the Regional Court Munich I considered the designation “Refurbished Certificate” to be misleading, as an average consumer is not familiar with the English term “refurbished” and would not be able to infer its meaning. Even a literal translation of the term as “reconditioned certificate” would not convey that the smartphone is a used item.
(Judgment of the Regional Court Munich I of July 30, 2018, file no. 33 O 12885/17 – not yet legally binding)
Our Recommendation:
Therefore, it is strongly recommended that all sellers clearly offer used items for sale, explicitly labeling them as “used item,” “second-hand goods,” or using a comparable, unambiguous formulation.
GoldbergUllrich Attorneys at Law 2018
