Expanding into a foreign market offers numerous benefits, including expanding customer bases, increasing revenue, and strengthening brand position. However, it is also fraught with challenges. Entrepreneurs must thoroughly familiarize themselves with the formal requirements and regulations applicable both in their given country and under EU law. Knowledge of these regulations is crucial to ensuring compliance with local, specific standards and minimizing legal risk.

One of the fundamental aspects to consider when expanding sales into new markets is drafting proper online store terms and conditions. This requires a thorough legal analysis. To facilitate this process, in this latest series of articles, we will discuss the most important issues to consider when drafting terms and conditions for online stores in individual EU countries. Understanding, and more importantly, meeting, these requirements is key to successful and safe expansion into a new market.

First up, our western neighbor - Germany!

German market

German law related to online sales is considered very strict. The Allgemeine Geschäftsbedingungen (AGB) is the German equivalent of the Terms and Conditions, which every online store owner is required to have. As a legal document, the AGB is subject to publication and contains a collection of all commercial terms and conditions governing the operation of an online store.

What should the regulations contain?

Terms and conditions should be constructed in a clear and understandable manner, covering all important aspects of the store's operations. The most important elements of the terms and conditions include:

how to place an order

• Store Owner Details: Full owner information, including address and contact details, to identify the business.
• Ordering Procedure: A detailed description of the steps a customer must take to place an order, including information about available ordering methods.
• Payment methods: List of accepted payment methods, such as credit cards, bank transfers, mobile payments and online payment systems.
• Delivery terms: Information on delivery costs, methods and times, as well as the areas to which the store ships.
• Complaints and Returns: Procedures for filing complaints and returning goods, including deadlines, requirements and responsibilities of both the customer and the seller.

The last of the above points, known in German law as the "Widerrufsbelehrung" (instruction on the right of withdrawal), is particularly important. This element should be included both in the terms and conditions and on the online store's website. It informs customers about their rights related to returning goods and the complaints procedure. The "Widerrufsbelehrung" guarantees consumer rights, ensuring transparency and security of the transaction. Customers know they have the right to return goods within a specified period and can do so without incurring additional costs, provided the return conditions are met.

In what language should the document be prepared?

An online store's terms and conditions must be understandable to its intended audience, so if you're planning to sell in the German market, they should be written in German. This is a legal requirement to ensure that consumers fully understand the terms and conditions of their purchases and are aware of their obligations. It's crucial that the translation of the terms and conditions be accurate and professional, minimizing the risk of misunderstandings and ensuring the online store's compliance with internal legal regulations.

Abmahnung – what is it and what does it mean?

A warning is a term from German law that means a warning or demand to cease and desist from infringements. In the context of running an online store, an warning refers to a formal warning. It can be issued by a consumer protection association or by a market competitor of the e-seller. It can concern both issues related to the store's terms and conditions and other aspects of e-commerce operations. Examples of violations for which a warning can be issued include:

• inaccessible or poorly placed legal documents (e.g. store regulations, missing or incomplete instructions on the right to withdraw from the contract, lack of a privacy policy),
• contractual clauses violating statutory consumer rights, failure to comply with legally required information obligations – e.g. regarding withdrawal from the contract or warranty and guarantee,
• incomplete information regarding the seller's identification data,
• using other people's photos without the author's consent, copying product descriptions,
• using other people's brands and trademarks,
• no unit price.

Failure to comply with the warning can result in serious legal and financial consequences. Failure to comply with the demands outlined in the warning may result in legal action, which typically results in fines and cease-and-desist orders. Therefore, it is crucial that e-commerce companies in Germany comply with the law and regularly update their policies and procedures.

In addition to the regulations, you should also take care of documents such as: privacy policy, imprint, and returns policy.

Our team at ecommerce.legal will develop customized terms and conditions for your online store, guaranteeing full compliance with German law and professional support that will ensure security and build trust among customers.

Please contact us!

📞+48 781 906 020

📨 biuro@ecommercelegal.pl