The Cartel Office wants to clarify whether online retailers are complying with the applicable law when checking their customers’ ability to pay. “Many consumers are not aware that their creditworthiness is checked with the help of so-called score values when shopping online, especially when it comes to the popular “purchase on account”,” explained the head of the authorities, Andreas Mundt, in Bonn on Thursday. The competition authorities initiated a sector inquiry. This is intended to provide information as to whether and in what form the dealers provide information about the scoring, how the checks are carried out and what criteria the credit check is based on.
Merchants rely on credit checks to minimize the risk of non-payment. Credit agencies evaluate personal data and determine individual scoring values - on the basis of this it is possible to draw conclusions as to whether the bill will probably be paid or not. Such credit checks are linked to data protection requirements, such as the voluntary consent of the person concerned. According to the Bundeskartellamt, online retailers proceeded inconsistently when it came to scoring. “Transparency and consent deficits could trigger consumer law violations.”
As part of the sector inquiry, the competition authorities are now sending around 50 online retailers and credit agencies a catalog of questions. A report will be published after the investigation is complete.