Court of Justice of the European Union (EuGH) ruling: "Buy now, pay later" in online advertising constitutes a sales promotion

Anyone wishing to offer "buy now, pay later" in online retail must in future comply with transparency obligations in advertising in order to avoid receiving a cease-and-desist letter.

As a consumer, one has become accustomed to various payment methods being offered in online retail. In particular, payment methods such as instalment payments or buy now, pay later are often not just listed, but are specially highlighted in the offers, because many potential buyers prefer such payment methods. However, it was not always clear at first glance what legal framework conditions applied when online retailers specially drew attention to individual payment methods.

With regard to the scope and extent of the information obligations of online retailers, the Court of Justice of the European Union (EuGH) has now provided greater clarity.

New requirements for transparency when buy now, pay later is offered in e-commerce

By ruling of 15. Mai 2025 the Court of Justice of the European Union (EuGH) in the case C‑100/24 has clarified: The reference "Bequemer Kauf auf Rechnung" in online advertising constitutes an offer of sales promotion within the meaning of the E-Commerce Directive (2000/31/EG) – provided that the payment modality affords the consumer an objective and secure advantage. Enterprises in online retail must therefore disclose all relevant conditions already when advertising a payment option such as buy now, pay later – in particular a creditworthiness assessment.

This ruling is a milestone in e-commerce law: It specifies the transparency obligations in digital advertising and has a direct impact on the design of online shops, marketing measures and legal notices.

What was it about?

The defendant bonprix Handelsgesellschaft mbH advertised on its website in December 2021 with the statement ""Bequemer Kauf auf Rechnung"" without drawing attention to a creditworthiness assessment. The Verbraucherzentrale Hamburg considered this to be misleading advertising and a violation of transparency obligations pursuant to the Telemediengesetz.

The Telemediengesetz came into force on 15.04.2024. The former § 6 Abs. 1 Nr. 3 TMG, which the defendant bonprix Handelsgesellschaft mbH in the opinion of the Verbraucherzentrale Hamburg had breached, was however incorporated into § 6 Abs.1 Nr. 3 of the Digital Services Act (Digitale-Dienste-Gesetz (DDG)) with identical content. In substance, nothing has changed.

After rejection by the lower courts, the Federal Court of Justice (BGH) referred the question to the Court of Justice of the European Union (EuGH) as to whether such a reference to a method of payment as "sales promotion" is to be classified – with the aim of creating clarity regarding information obligations in online advertising.

The decision of the Court of Justice of the European Union (EuGH): transparency obligation in respect of payment options

Central statement:

Whoever draws attention to a method of payment such as Rechnungskauf in advertising must provide information transparently and at an early stage about all terms and conditions of use – in particular if a credit check is required.

Key statements in detail:

• A method of payment which affords the consumer an advantage (e.g. deferred payment, no advance payment, protection of sensitive data) constitutes an "offer of sales promotion".
• This advantage must be objective, certain and suitable to influence purchasing behaviour – not necessarily materially or monetarily.
• The information obligation exists already at the first point of advertising contact, e.g. on the homepage or in product descriptions, not only at checkout.
• A mere mention in the subsequent ordering process does not satisfy the requirements of the E-Commerce-Richtlinie.

Significance for online retailers and marketing professionals

The judgment of the Court of Justice of the European Union (EuGH) has considerable practical relevance for all e-commerce enterprises which offer payment methods such as purchase on account, instalment purchases or financing:

Transparent presentation of payment terms directly in the advertising
Reference to credit check for affected payment methods
legally compliant design of advertising messages, landing pages and payment processes
Avoidance of cease-and-desist letters, penalty notices and class action suits

Our recommendation: How to advertise legally with 'buy now, pay later'

1. Review your advertising: Does your website contain notices such as 'payment on account' or 'pay later' without disclosing conditions?
2. Supplement notices on creditworthiness checks or other conditions of use prominently displayed in the immediate advertising context.
3. Document and design your information flows in compliance with the law – from the landing page to checkout.
4. Have your online presence reviewed by AVANTCORE Rechtsanwälte in Stuttgart for legal compliance to avoid penalty notices or competition law cease-and-desist letters.

Contact us for legally compliant implementation

AVANTCORE Rechtsanwälte advise you comprehensively on all matters relating to e-commerce law, online advertising and information obligations in digital commerce. We support you with our lawyers and specialist lawyers for IT law and commercial intellectual property protection in:

• Review of your online shop and advertising content
• Development of legally compliant payment option communication
• Creation of compliance-compliant checklists
• Training of marketing and sales teams