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Misleading promise of financial benefit internationally enforceable

Caution

Austrian legal rules are applicable towards foreign companies

According to Austrian law a company that sent a consumer a misleading promise of financial benefit is liable to actually pay the promised amount – at least if the consumer sues the trader.

The relevant provision can be found in the Federal Act Establishing Provisions for the Protection of Consumers (Consumer Protection Law – KSchG). Until June 12th 2014 § 5j KSchG was applicable, since June 13th 2014 this matter is regulated in § 5c KSchG.

However, these misleading notifications are often issued by foreign companies. What if the legislation of this foreign country does not foresee such a right for consumers?

Austrian law and place of jurisdiction

The Austrian High Court delivered a judgement in 2006 that the regulation of the Austrian Consumer Protection Law are applicable even towards foreign companies.

An Austrian consumer can file the claim to get the promised payment also at an Austrian court even if the trader is located in another country.

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