German courts rule against invalid price increases for heating and Amazon Prime

Recent judicial rulings in Germany have overturned several price increase mechanisms, potentially allowing consumers to reclaim overpaid fees.

The European Court of Justice (ECJ) has invalidated the ‘three-year rule’ regarding district heating (Fernwärme) costs. Previously, under German Federal Court of Justice (BGH) precedent, consumers could not challenge abusive price increases if they failed to object within three years of the first billing. The ECJ ruled this practice incompatible with EU directives on unfair terms in consumer contracts, as it allows the consequences of abusive clauses to persist for periods exceeding three years. While the ruling does not automatically declare all increases invalid, it requires individual assessments of whether heating price clauses comply with transparency and cost-reflection regulations.

Separately, the German Federal Court of Justice ruled that Amazon’s 2022 Prime subscription price increase was based on invalid terms. The court found that Amazon’s terms did not clearly outline consumer rights during price adjustments. As a result, a class-action lawsuit led by the Consumer Association of North Rhine-Westphalia (Verbraucherzentrale NRW) is underway at the Higher Regional Court of Hamm. Eligible members—those who were Prime or Prime Student subscribers before September 2022 and paid the increased rate—may be able to claim up to 84 euros through the Federal Office of Justice's litigation register.