Anyone who received a paid Prime membership when booking a trip through the Opodo booking platform can now request a refund. The Supreme Court (OGH) ruled in favor of the Chamber of Labor: taking out a paid membership of approximately 75 euros at the same time as booking a trip is invalid.
Booked more than one trip: When booking a trip, Opodo did not sufficiently inform consumers about the contractual terms for the Prime subscription, in particular the payment obligation, immediately before confirming the ‘buy now’ button.
The only small print stated that 74.99 euros would be automatically debited after the 30-day trial period. This approach is contrary to the Distance and Away Business Act (FAGG). The subscription was therefore never valid. Consumers can now reclaim their membership fees.
The AK also sued for eleven clauses and won. Here are the practically relevant illegal clauses of the booking platform:
- Invalid subscription: Booking a trip was incorrectly regarded as taking out a paid Prime subscription. The direct debit of 74.99 euros was made incorrectly. Consumers can request a refund via a sample letter.
- Invalid subscription renewal: The general terms and conditions of the Prime subscription also included an automatic renewal of this membership if the consumer did not cancel in time. However, there are clear conditions for an automatic contract renewal: consumers must be informed both contractually and factually of an upcoming contract renewal. They must also be able to object to the extension within a reasonable period.
- Loss of price advantage in case of cancellation of the trip: If the consumer were to cancel the trip under a clause, the Prime price benefit would no longer apply. This meant that consumers had to pay the booking platform the difference from the normal price. The court ruled: Consumers do not have to pay extra on top of the normal price. The price advantage is not granted in exchange for the travel booking, but for the paid subscription. Consumers can reclaim reimbursements already paid.
- Forfeiture of membership fees upon termination: If consumers canceled their Prime membership prematurely, a clause stipulated that the prepaid membership fee would be withheld for the entire period. Opodo could not prove a corresponding administrative effort, meaning the clause is against the law. Consumers can request a pro-rata membership fee refund upon termination.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
