Online law

E-commerce, business-to-business, consumer-to-business and an abundance of further terms often used today allow verse ample possibilities in the field of law that practically anyone can take advantage of. If you get familiar with the legal framework already today to include it into your planning you will be on the road to long-term success.No matter how the development of the internet is judged today, it is challenge for all those who actively use it.

Domain name disputes, linking liability, meta tags or other invisible web elements as well disputes within copyright law are characteristic for the internet nowadays. Another aspect is the “freedom” of content providers, access providers and host providers that is increasingly limited by law.

Consequently, the new area of online law (or internet law) has emerged. Legal questions relating to this area often stem from trademark law, competition law or copyright law which sometimes overlap with new regulations.

German Online Law

1. Online Law in Germany

German online law ("Onlinerecht") is a complex legal field that encompasses various regulations governing digital activities, e-commerce, data protection, and online contracts. It draws from multiple legal sources, including the German Civil Code (BGB), the Telemedia Act (TMG), the General Data Protection Regulation (GDPR), and competition law.

2. Digital Law (Digitales Recht)

Digital law regulates legal aspects related to digital platforms, software, AI, and emerging technologies. It covers:

Data protection (GDPR): Companies must ensure compliance with data processing rules.

Liability for AI decisions: AI-generated content and decisions raise new legal questions about accountability.

Digital content contracts: The EU’s Digital Content Directive (implemented in Germany) governs digital goods and services.

Example Case: The European Court of Justice (ECJ) ruled in "Schrems II" that the EU-U.S. Privacy Shield was invalid, significantly affecting data transfers.

3. Online Contracts (Onlineverträge)

Contracts formed over the internet must comply with the general contract law principles of the BGB. Key aspects include:

Right of withdrawal (Widerrufsrecht): Consumers can revoke online contracts within 14 days.

Legal certainty in clickwrap agreements: Courts examine whether users had clear consent in online agreements.

E-commerce rules: Sellers must provide clear and complete information about goods and services (e.g., Impressumspflicht).

Example Case: The German Federal Court of Justice (BGH) ruled in "Buttonlösung" that e-commerce checkout buttons must clearly state "zahlungspflichtig bestellen" to be legally binding.

4. Influencer Law (Influencer-Recht)

Influencers and content creators must comply with advertising laws and disclosure regulations under the German Unfair Competition Act (UWG).

Labeling of advertisements: Posts with commercial intent must be labeled as ads.

Hidden advertising violations: Influencers face fines if they do not disclose sponsored content.

Trademark and copyright concerns: The use of third-party content in videos and posts must respect IP laws.

Example Case: The BGH ruled in 2021 ("Cathy Hummels Case") that an influencer’s post did not require labeling as an ad since it lacked direct commercial intent.

5. Crypto Law (Kryptorecht)

Crypto law covers blockchain technology, cryptocurrencies, and decentralized finance (DeFi) under financial and banking regulations.

BaFin licensing: Crypto exchanges and wallets require BaFin approval.

AML and KYC regulations: Crypto service providers must comply with anti-money laundering laws.

Taxation of crypto assets: The German tax authorities differentiate between holding periods and trading profits.

Example Case: BaFin classified Bitcoin as a financial instrument, subjecting crypto exchanges to strict financial regulations.

6. Internet Law (Internetrecht)

Internet law encompasses liability issues, hosting provider responsibilities, and digital defamation.

Hosting provider liability: Platforms like Facebook and YouTube must remove illegal content swiftly (NetzDG).

Right to be forgotten: Users can demand the deletion of personal data under GDPR.

Cybercrime regulations: Laws target hacking, phishing, and digital fraud.

Example Case: The ECJ ruled in "Google Spain v. AEPD" that individuals have the right to request the removal of outdated or irrelevant personal information from search engines.

7. Consumer Protection in the Internet (Verbraucherschutz im Internet)

German and EU law provide robust consumer protection mechanisms for online transactions.

Consumer-friendly return policies: Strong refund rights for defective digital products.

Unfair contract terms: Businesses must avoid unfair clauses in online terms and conditions.

Dark patterns and misleading advertising: Online platforms are restricted from using deceptive design to manipulate user decisions.

Example Case: The BGH ruled against Amazon’s "Buy Now" button due to unclear contract terms, requiring greater transparency in online sales.

Summary: What Online Law Professionals Do

Online law professionals provide specialized legal support in:

Drafting and reviewing online contracts, terms & conditions (AGB).

Ensuring compliance with GDPR and data protection regulations.

Advising influencers and businesses on advertising disclosure laws.

Representing clients in digital disputes and litigation.

Assisting in licensing and regulatory compliance for digital and crypto companies.

Handling legal aspects of e-commerce and platform liability.

Enforcing IP rights and combating online fraud.

German online law is an evolving field that adapts to new technological challenges, requiring professionals to stay updated on legal developments and court rulings.