Austria's Consumer Appeal: Adapting To The People's Choice

Austria has a number of consumer protection laws and regulations in place. There is no uniform legal framework regarding consumer protection law in Austria, but the Austrian Federal Act on Consumer Protection (Konsumentenschutzgesetz) is the most important source of Austrian consumer protection law. The Austrian consumer watchdog (Verein für Konsumenteninformation) is vigilant in monitoring compliance with consumer protection laws and may bring legal actions against enterprises failing to comply. There are also a number of dispute resolution offices available in Austria for disputes resulting from a contract between a consumer and a business. Consumers and retailers/manufacturers can appeal decisions made by the consumer authorities or by a court.

Consumer protection laws

Austria has adapted to consumer appeal by implementing a range of consumer protection laws. There is no uniform legal framework for consumer protection in Austria, but the Austrian Federal Act on Consumer Protection (Konsumentenschutzgesetz) is the most important source of consumer protection law in the country. This act contains non-sector-specific provisions protecting consumers' interests, while sector-specific provisions of consumer protection law can be found in laws regulating certain business activities. For example, the Austrian Federal Act on Payment Services (Zahlungsdienstegesetz) contains information obligations for traders, which are binding when dealing with consumers. The predominant general topics covered by Austrian consumer protection law include general contract law, damages, housing and tenancy law, financial services, unfair competition, telecommunications, utility services, legislation on the displaying of prices and product safety.

The Austrian consumer watchdog (Verein für Konsumenteninformation) is vigilant in monitoring compliance with consumer protection laws and may bring legal actions against enterprises failing to comply. It may, in particular, instigate proceedings against traders using non-compliant general terms and conditions. In such proceedings, the interpretation of a specific clause in general terms and conditions has to be the one that is most beneficial for consumers, which means that the threshold for violating consumer protection laws is very low.

There are also alternative dispute resolution offices available in Austria for disputes resulting from a contract between a consumer and a business. Directive 2013/11/EU on the alternative resolution of consumer rights disputes was implemented in Austria via the Alternative Dispute Resolution Act (Sag, Federal Law Gazette I no. 105/2015). There are a total of eight recognised dispute resolution offices, some of which already existed previously, such as those in the areas of energy, telecommunications, passenger rights and the post office.

Consumers in Austria also have the option to pursue complaints further by referring to an ombud or alternative dispute resolution body. Such bodies may include the independent Joint Conciliation Board of the Austrian Banking Industry, the information and complaints body of the Austria Insurance Association, the customer ombud for the financial services sector, or the Conciliation Body for Consumer Transactions.

Consumer dispute resolution offices

Austria has adapted to consumer appeal by implementing the Alternative Dispute Resolution Act (Sag, Federal Law Gazette I no. 105/2015), which is based on the EU directive 2013/11/EU. This act established alternative dispute resolution offices to handle disputes between consumers and businesses arising from contracts. There are eight recognised dispute resolution offices in Austria, each responsible for a different field, including energy, telecommunications, passenger rights, and the post office.

The Austrian consumer watchdog, Verein für Konsumenteninformation, plays a crucial role in monitoring compliance with consumer protection laws. It can take legal action against enterprises that fail to comply, particularly targeting traders using non-compliant general terms and conditions. The Austrian Federal Act on Consumer Protection (Konsumentenschutzgesetz) serves as the primary source of consumer protection law in the country, containing non-sector-specific provisions to protect consumers' interests.

Additionally, Austria has sector-specific provisions within laws regulating specific business activities. For example, the Austrian Federal Act on Payment Services includes information obligations for traders when dealing with consumers. The predominant topics covered by Austrian consumer protection law include general contract law, damages, housing and tenancy law, financial services, unfair competition, telecommunications, utility services, legislation on displaying prices, and product safety.

Consumers in Austria have several options for pursuing complaints, including independent bodies such as the Joint Conciliation Board of the Austrian Banking Industry, the information and complaints body of the Austria Insurance Association, the customer ombud for the financial services sector, and the Conciliation Body for Consumer Transactions. These bodies work to resolve disputes and protect the rights of consumers in their respective sectors.

The Austrian consumer watchdog

Austria has adapted to consumer appeal by implementing a number of consumer protection laws and regulations. There is no uniform legal framework for consumer protection in Austria, but there are a number of laws in place that protect consumers' interests. One of the most important sources of Austrian consumer protection law is the Austrian Federal Act on Consumer Protection (Konsumentenschutzgesetz). This act contains non-sector-specific provisions that protect consumers' interests, as well as sector-specific provisions that may be found in laws regulating certain business activities. For example, the Austrian Federal Act on Payment Services (Zahlungsdienestegesetz) contains information obligations for traders that are binding when dealing with consumers.

In addition to the work of the consumer watchdog, Austria has implemented a number of dispute resolution offices to handle consumer complaints. Since 9 January 2016, there has been an alternative dispute resolution office available in Austria for almost every dispute resulting from a contract between a consumer and a business. There are a total of eight recognised dispute resolution offices, some of which already existed previously in areas such as energy, telecommunications, passenger rights and the post office. Consumers can also refer to independent ombuds or alternative dispute resolution bodies, such as the Joint Conciliation Board of the Austrian Banking Industry or the customer ombud for the financial services sector.

Consumers in Austria also have the right to appeal decisions made by consumer authorities or courts. Appeals may be filed against judgments of the court of first instance, and appeals against second instance judgments can be made to the Supreme Court. Both consumers and retailers/manufacturers can appeal decisions, and an appeal suspends the effect of any penalty or requirement to pay a fine.

The Austrian Federal Act on Consumer Protection

In Austria, there is no uniform legal framework regarding consumer protection law. The Austrian Federal Act on Consumer Protection (Konsumentenschutzgesetz) contains non-sector-specific provisions protecting consumers' interests. Sector-specific provisions of consumer protection law may be found in laws regulating certain business activities, such as the Austrian Federal Act on Payment Services (Zahlungsdienstegesetz), which contains information obligations for traders when dealing with consumers. The predominant general topics covered by Austrian consumer protection law include general contract law, damages, housing and tenancy law, financial services, unfair competition, telecommunications, utility services, legislation on the displaying of prices and product safety.

The Austrian consumer watchdog (Verein für Konsumenteninformation) is vigilant in monitoring compliance with consumer protection laws and may bring legal actions against enterprises failing to comply. It may, in particular, instigate proceedings against traders using non-compliant general terms and conditions. In such proceedings, the interpretation of a specific clause in general terms and conditions has to be the one that is most beneficial for consumers, which means that the threshold for violating consumer protection laws is very low.

Directive 2013/11/EU on the alternative resolution of consumer rights disputes was implemented in Austria via the Alternative Dispute Resolution Act (Sag, Federal Law Gazette I no. 105/2015). Since 9 January 2016, there has been an alternative dispute resolution office available in Austria for almost every dispute resulting from a contract between a consumer and a business. There are a total of eight recognised dispute resolution offices responsible for different fields, including energy, telecommunications, passenger rights and the post office.

In addition to the above, consumers in Austria have several options for pursuing complaints, including referring them to an ombud or alternative dispute resolution body. Such bodies may include the independent Joint Conciliation Board of the Austrian Banking Industry (unabhängige Gemeinsame Schlichtungsstelle der österreichischen Kreditwirtschaft), the information and complaints body of the Austria Insurance Association (Verband der Versicherungsunternehmen Österreichs), the customer ombud for the financial services sector (Ombudsstelle für Kunden der Finanzdienstleistungsbranche) or the Conciliation Body for Consumer Transactions (Schlichtung für Verbrauchergeschäfte).

The Austrian Federal Act on Payment Services

The Payment Services Act 2018 (ZaDiG 2018) addresses a broad range of aspects relating to payment services. Each type of activity requires a separate licence, which is granted by the respective supervisory authority. Payment services that require a licence are defined in Article 1 para. 2 ZaDiG 2018: Incoming payment transactions (no. 1), Outgoing payment transactions (no. 2), Payment transactions (no. 3) and Payment transactions involving the granting of credit (no. 4).

The EU Directive 2007/64 (“Payment Service Directive”) was implemented in Austrian law with the Payment Services Act 2009. The Payment Services Act 2018 (ZaDiG) now implements the new version of the Payment Services Directive (EU Directive 2015/2366 Payment Service Directive 2 - PSD 2) in Austrian law. The creation of a legal basis for the creation of an EU-wide internal market for payment transactions was a key aim of the legislation. Cross-border payments should be made as simple, efficient and safe as “national” payments within the member states. The legislation also increases competition by opening the payment transactions for new providers (third-party providers (TPP) - payment service providers).

In Austria, there is no uniform legal framework regarding consumer protection law. The most important source of Austrian consumer protection law is the Austrian Federal Act on Consumer Protection (Konsumentenschutzgesetz). The Austrian consumer watchdog (Verein für Konsumenteninformation) is vigilant in monitoring compliance with the Austrian consumer protection laws and may bring legal actions against enterprises failing to comply with those laws. It may, in particular, instigate proceedings against traders using non-compliant general terms and conditions. In such proceedings, the point of departure for an interpretation of a specific clause in general terms and conditions has to be the one that is most beneficial for consumers, which means that the threshold for violating consumer protection laws is very low. Directive 2013/11/EU on the alternative resolution of consumer rights disputes was implemented in Austria via the Alternative Dispute Resolution Act (Sag, Federal Law Gazette I no. 105/2015). Since 9 January 2016 there has been an alternative dispute resolution office available in Austria for almost every dispute resulting from a contract between a consumer and a business.

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