In spring 2022 the Bundeskartellamt launched a sector inquiry under consumer protection law into scoring practices used in the online retail sector. The sector inquiry deals with retailers’ practices to check consumers’ credit standing, that is their ability to pay when shopping online.
Credit checks are often based on individual scores which are determined by credit bureaus taking into account personal data, and which express the probability of buyers paying their bills. Carrying out credit checks is subject to strict requirements under data protection law.
Many consumers are not aware that when shopping online their credit standing is checked based on so-called score values, especially when choosing invoicing as their payment method. That is why the Bundeskartellamt is examining whether and how online retailers provide information on such practices, how the checks are carried out and on which criteria the credit checks are based. The sector inquiry involves companies that may be of relevance to scoring, including, for example, credit bureaus which assign scores and thus provide online retailers with an essential factor for their credit checks.