The Consumer Dispute Resolution Act (VSBG) came into force on April 1, 2016. The aim of the law is to enable consumers to settle disputes with companies amicably via a consumer dispute resolution body in an arbitration or mediation procedure. However, when using corresponding (mandatory) arbitration and mediation clauses in general terms and conditions, companies should note that these may be inadmissible under the new Section 309 No. 14 BGB.
§ 309 No. 14 BGB reads:
§ Section 309 Prohibition of clauses without possibility of evaluation
Even to the extent that a deviation from the statutory provisions is permissible, is ineffective in general terms and conditions (…)
14. (Waiver of action)
a provision according to which the other party to the contract may only assert its claims against the user in court after it has attempted an amicable settlement in an out-of-court dispute resolution procedure.
Mediation and arbitration clauses in contracts between companies, on the other hand, are common practice and – at least so far – permissible.
Our specialists will be happy to assist you with questions regarding the drafting and integration of mediation or arbitration clauses in contracts.
