DAZN, the popular sports streaming service, is finding itself under scrutiny as legal challenges arise concerning its 2022 terms of service. The Oberlandesgericht München (OLG) has ruled against several of its contractual clauses, deemed excessive and confusing for consumers.
The ruling is the result of litigation filed by the Verbraucherzentrale Bundesverband (vzbv), Germany's central consumer organization. This lawsuit was sparked by clause complaints from the vzbv, which argued these terms permitted DAZN overly broad rights to increase prices and modify contracts without adequate transparency.
Jutta Gurkmann, head of consumer policy at vzbv, stated, "Die Nutzungsbedingungen von DAZN waren derart schwammig formuliert, dass sie dem Unternehmen zu viel Spielraum für willkürliche Preis- und Vertragsänderungen boten". This suggests the terms were not only vague but also provided DAZN with considerable leeway to impose significant changes.
Among the controversial terms, DAZN's provision to adjust subscription prices according to "sich verändernde Marktbedingungen" or significant changes to procurement and service costs raised alarms. The court agreed with the vzbv assessment, emphasizing the lack of clarity surrounding both the conditions and extent of potential price changes. Without precise guidelines, subscribers would struggle to challenge the validity of increases arbitrarily set by DAZN.
Further complicates matters is the unbalanced nature of these clauses — the OLG noted the right to increase prices did not align with any obligation for DAZN to lower them even if costs decreased. This one-sided approach was heavily criticized by the court.
DAZN's ability to alter subscription packages without proper limits drew additional disapproval. The court deemed several clauses allowing the company to change or remove sporting content from subscriptions as illegal. According to the court, users should not face unreasonable terms where DAZN could unilaterally modify the content they signed up for.
Specifically, the court pinpointed aspects of DAZN's contract which suggested programs could "mit der Zeit variieren" and were subject to "gewöhnlich gewissen Beschränkungen". This wording was seen as allowing the company excessive discretion to modify the nature and quantity of content, which the judges believed was unacceptable for subscribers.
The ruling culminated with the OLG declaring nine clauses unlawful and backed the earlier decision made by the Landgericht München. They dismissed DAZN’s appeal for revision, affirming the original court's findings. Yet, DAZN has responded by filing a non-admission appeal to the Bundesgerichtshof, challenging the ruling's validity.
On another legal front, vzbv is also pursuing class action litigation against DAZN concerning alleged unjustified price hikes from 2021 and 2022. The organization's goal is to secure refunds for affected customers. Interested parties can join the class action and sign up for updates through the designated website, effectively staying informed on their rights and the progress of the legal proceedings.
The outcomes of these legal disputes could shape how streaming services implement contractual changes and handle price increments, possibly leading to more consumer-friendly practices across the industry. This case could represent more than just the future of DAZN but might serve as a precedent for other streaming platforms as well.
Given the backdrop of rising streaming subscription costs across various providers, this judgment serves as significant encouragement to consumers asking whether such price hikes are legitimate. Legal authorities are signaling these kinds of clauses cannot be assumed as acceptable without scrutiny.
Jutta Gurkmann asserted the necessity for transparency, noting, "Verbraucherinnen und Verbraucher müssen Preiserhöhungen und Programmeinschränkungen in ihren Aboverträgen nachvollziehen können." With court backing, consumer advocates are emphasizing the importance of clear, fair terms within subscription agreements.
DAZN’s future remains uncertain as legal battles over its terms continue. Whether these developments will prompt wider industry changes is yet to be seen, but the spotlight on DAZN's practices may lead to more equitable streaming services.
