Purchase on account
as
Sales promotion.
Purchase on account
as
Sales promotion.
from
Sounds harmless: “Convenient purchase on account”. But when does it become a sales promotion offer – with extra information obligations? And what exactly do stores now have to provide? A recent ruling by the Federal Court of Justice sheds light on this.
Payment option or sales promotion
An online retailer prominently advertised “Convenient purchase on account” on its website. It only became clear during the ordering process that this service was only available after a positive credit check. A consumer protection association considered this to be a misleading commercial act and an infringement of essential information obligations.
After the lower courts dismissed the consumer advocates’ lawsuit, the case ended up at the Federal Court of Justice.
Information obligations under the DDG and UWG
Essentially, the case revolves around the question of whether the offer of purchase on account is a sales promotion measure. The provisions of the E-Commerce Directive and its implementation in the German Digital Services Act (DDG) require that the terms and conditions of sales promotions must be “easily accessible, clear and unambiguous”.
If such information is missing or difficult to find, this not only affects transparency, but also competition law. This is because withholding essential information constitutes an infringement of competition law.
The ECJ case “Bonprix” as a trailblazer
In May 2025, the European Court of Justice (ECJ) clarified in case C-100/24 – Bonprix that references to payment methods can be considered sales promotions even if they only convey a limited economic advantage. The ECJ emphasized that consumers must be able to recognize the conditions under which the advertised advantage – such as purchase on account – actually applies when they first access a website.
Federal Court of Justice decision on purchase on account
The Federal Court of Justice follows with its Judgment of 11.09.2025 – Ref. I ZR 14/23 the line of the ECJ explicitly. The Federal Court of Justice overturned the decision of the lower court and referred the case back, but clarified important principles. The decisive factor is whether the purchase on account represents an objective advantage for the consumer – for example in the form of a deferral of payment, greater security or the elimination of an advance payment obligation in the event of a reversal. If this is the case, the reference to purchase on account can be a sales promotion offer.
This means that even the simple statement “Convenient purchase on account” can constitute a sales promotion if it promises an objective advantage. And anyone who engages in sales promotion must provide complete information immediately.
Consequences for online retailers
The ruling is a clear signal for online retailers : those who advertise must also provide information.
Retailers who advertise purchase on account, installment plan or “Buy Now, Pay Later” must make the exact conditions for use clearly recognizable and easily accessible – at the latest at the first visual contact with the offer.
It is important that this reference is placed directly with the advertising promise, not in the GTC or during the ordering process. This can be done using links and asterisks. The linked information page should then explain in simple language, for example, when a credit check is carried out, which requirements apply and under which circumstances the purchase on account can be rejected.
Risks in the event of violations
If such clear information is missing, there is a risk of cease and desist letters and injunctions. It becomes particularly critical if consumers only find out at the checkout that purchase on account is not possible. This can be seen as a “bait offer” – with the known consequences.
Companies should therefore:
- Check all advertising spaces (homepage, product page, banner) for transparency,
- Archive internal documentation (screenshots, versions),
- and ensure that marketing and law work closely together.
Conclusion
Purchase on account can be a sales promotion, at least if the use of the payment method is subject to conditions.
Anyone who only offers and advertises purchase on account subject to conditions must provide clear, transparent information about the conditions and make this information easily accessible.
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