When purchasing online via PayPal, Federal Supreme Court (BGH) has strengned rights of sellers. Despite so-called PayPal buyer protection, sellers would have possibility to sue purchase price in state courts in case of a dispute, highest German civil judges decided in Karlsruhe.

PayPal customers can claim buyer protection if a product does not arrive or is substantially different from item description. The payment service n reserves purchase price paid to buyer – and charges seller's PayPal account in same amount.

On or hand, sellers can sue, Federal Supreme Court (AZ: VIII ZR 83/16 and VIII ZR 213/16t). From Court's point of view, however, buyer has a considerable advantage: "The seller first has black Peter and has to sue his claims," explained presiding Judge Karin Milger.

Legitimate interest of private sellers

In his decision, BGH also had to take into account legitimate interest of seller. "Orwise this would have been for private sellers." The rules of PayPal could not ensure that interests of both parties are properly taken into account.

According to his spokeswoman, payment service now wants to wait and analyse detailed statement of reasons. Then one will decide wher directive needs to be changed: "The aim is to ensure that buyers and sellers can continue to trade safely with each or in future."

The civil Senate first dealt with effects of buyer protection on basis of two procedures. In one case, he dismissed revision of a buyer who had not received a mobile phone and claimed buyer protection. Because of sanding-it was an uninsured dispatch agreed-he was subjected to courts to seller. In second case, revision of a Sägenverkäufers had success. His proceedings were remitted: The District Court must clarify in a new negotiation wher his client has rightly received money for an alleged garage saw.

Date Of Update: 23 November 2017, 12:03