Consumer Rights Directive, Chapter 1, Article 2, (2)

A member of a golf club wanted to change his subscription from active to passive. As this was not possible on the terms he wanted, he then wanted to rescind from the subscription contract applying the rules provided in the Danish Consumer Contract Act. The Court did not apply this Act, as it the golf club was not a business.

A member of a golf club was registered as an active member, but only made payments as if he was a passive member because he never used the golf course. At one point, he wanted to change his formal status to a passive member. The subscription contract stated that a change could only be made with two weeks’ notice with effect from a new year. The member stopped all payments and wanted to apply the rules of the Consumer Contract Act stating a 1-month term of notice.

The critical legal issue was whether the agreement between the golf club and the member was a consumer contract.

As the golf club did not have a business purpose, the golf club was not regarded as a business. This conclusion was based on the formulation of the club’s articles of association. Here it stated that the purpose of the club was to support the interest in golf through the community and social activity in the club. Thus, the subscription contract was not a consumer contract even though the member was a consumer.

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The member of the golf club could not apply consumer protection legislation in his dispute with the golf club because the club was not a business. Thus, the dispute had to be settled by applying the club’s articles of association.