The Bundeskartellamt Launches Sector Inquiry into Scoring in the Online Retail Sector

The German Competition Authority ("the Bundeskartellamt") has launched a sector inquiry under consumer protection law into “scoring” practices used in the online retail sector. It deals with retailers’ practices to check consumers’ credit standing, and their ability to pay when shopping online.

Credit checks are carried out to minimize risks and are intended to provide contractual partners with information on whether certain individuals are able to meet their payment obligations. Credit checks are often based on individual scores which are determined by credit bureaus taking into account personal data, and which express the probability of buyers paying their bills. Carrying out credit checks is subject to strict requirements under data protection law, such as obtaining the voluntary consent of the persons in question to the processing of their data.

When ordering products from online retailers, the practice in this regard is inconsistent and in many cases not immediately clear to consumers.

After preliminary talks with experts and stakeholders, the Bundeskartellamt will soon survey around 50 selected online retailers and large credit bureaus in writing. The results of the sector inquiry will be published in a report upon the conclusion of the investigations.

You can reach the press release here.

Kind regards,

Zumbul Attorneys at Law

info@zumbul.av.tr