Case law

  • Case Details
    • National ID: 3-2-1-135-15
    • Member State: Estonia
    • Common Name:link
    • Decision type: Supreme court decision
    • Decision date: 24/11/2015
    • Court: Supreme Court
    • Subject:
    • Plaintiff: Republic of Estonia (through the Consumer Protection Board)
    • Defendant: Elisa Eesti AS
    • Keywords: invoice, price, telecommunications operator, unfair terms
  • Directive Articles
    Unfair Contract Terms Directive, Article 2, (a) Unfair Contract Terms Directive, Article 3, 1. Unfair Contract Terms Directive, Article 4, 1.
  • Headnote
    Standard terms that give its user the right to charge consumers for sending invoices by e-mail or by regular post might be void due to being unreasonably harmful, more specifically due to their derogation from a fundamental principle in law, i.e. the principle that the debtor bears the costs of performance of the debtor's obligations which also means that the costs necessary for the performance of an obligation must be included in the price of the product or service and these costs cannot be added to the other party for an extra charge. However, when assessing the validity of these standard terms, other terms in the defendant's contract and the circumstances under which the contract was signed should also be taken into account (for example, what are the consumer's other options for receiving a free invoice).
  • Facts
    The plaintiff filed an action requiring the defendant to terminate application of two standard terms in its general conditions. The defendant is a telecommunication company whose general conditions also included a price list for specific services. According to the price list, consumers were supposed to pay 60 cents for an invoice sent to them by e-mail and 70 cents for an invoice sent to them by regular post. The consumer could check the invoice for free online in the defendant’s customer operated system or in the consumer’s e-bank’s customer operated system.
    The plaintiff argued that both standard terms prescribing fees for sending invoices to consumers were unfair and thus void.
  • Legal issue
    (1) The basis for the invalidity of the standard terms in question can in theory be their derogation from a fundamental principle in law. The fundamental principle that should be taken into account is the principle that the debtor bears the costs of performance of the debtor's obligations. This also means that the costs necessary for the performance of an obligation must be included in the price of the product or service and these costs cannot be added to the other party for an extra charge. Information must be presented in a way that the client can preserve it under his/her own control and if necessary, use it to assert his/her rights and fulfil his/her obligations (including accounting obligations).

    (2) In order to assess the invalidity of the standard terms in question, other general conditions of the defendant and the circumstances under which the contract was signed should also be taken into account. Among other things, the courts have to analyse whether the option of checking the invoice for free online is reasonable, i.e. not too complicated or burdensome for clients, and whether the clients can effectively assert their rights and fulfil their obligations. Other free options offered by the defendant for informing the client must also be taken into account, for example, the possibility of getting the invoice on paper from the defendant’s stores. When deciding on the reasonableness, the rights of the people who do not use Internet services must also be taken into account.
  • Decision

    Is a standard term void due to being unreasonably harmful if it gives its user the right to charge consumers for sending invoices by e-mail or by regular post?

    URL: N/A

    Full text: Full text

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  • Result
    The court referred the matter back to the second instance court for a new hearing.