Saturday, 22 October 2016

Are laptops with pre-installed software “unfair” under the Unfair Commercial Practices Directive? The ECJ decides

Are laptops with pre-installed software “unfair” under the Unfair Commercial Practices Directive? The ECJ decides… 
Vincent Deroo-Blanquart v Sony Europe Limited, Case C-310/15, 7 September 2016.
The ECJ was asked to consider whether the sale of Sony laptops with software already pre-installed, without enabling the consumers to have the option to be able to purchase the laptop without the software, could be deemed as ‘unfair’ under the Unfair Commercial Practices Directive (2005/29/EC) (UCPD) which is implemented by the Consumer Protection from Unfair Trading Regulations 2008 (SI 2008/1277) in the UK.
It was held that the sale of the laptop with the pre-installed software formed a combined offer and the fairness of the commercial practice could be scrutinised under the UCPD.
It must be highlighted however that a combined offer is not automatically unfair, as seen in the case of VTB-VAB NV v Total Belgium NV (C-261/07) and the fairness of each case must be considered on its own merit.
In this instance, in reaching their decision, the ECJ asked the following questions:
-Was the combined offer of laptop and pre-installed software contrary to the requirements of professional diligence?
-The ECJ found that consumers were already made aware that the laptop came equipped with pre-installed software, in addition, there was also strong evidence indicating that the majority of consumers wanted the pre-installed software.
-The retailer had also offered its consumers the option to have a refund for the combined purchase.
The ECJ noted that the consumer was told in advance that the software was pre-installed, there was evidence that a significant proportion of consumers wanted pre-installed software and the retailer had offered to cancel and refund the combined purchase. These factors were likely to satisfy the requirements for honest market practice or good faith in the field of the manufacturing of computer equipment for the general public. Click here for more details..

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