True also from my experience. I've noted several potential reasons why that is from my time in Germany.
Government provided customer protection laws are quite lax and disputes tricky to win and don't represent a big enough deterrent for the scammers when they're just a slap on the wrist and therefore part of the cost of doing business. Sure, you can get sued and you loose once, but if 80 of the 100 customers you scammed don't sue you or don't win, then you're still at a net positive and therefore it's profitable to keep doing that.
Also that Germany doesn't have common law, so lawsuits aren't arbitrated based on precedent, so customers who got screwed need to sue and win individually for the same issue which is favorable for the companies doing the screwing as without the precedent of common law that minimizes their risk of loosing by slam dunk every time. Also, some German judges art just tech illiterate boomers who will throw out a case they don't even understand unless you're Axel Springer.
(some) Rental agreements, internet, telco and gym memberships are my favorite infamous examples. They're almost universally regarded as anti-consumer, with tonnes of sketchy clauses, but German lawmakers do nothing to improve that for the consumer.
Secondly, Germans aren't used to being very demanding and lighting a brand on fire on social media the way Americans/Anglophones do on Twitter when they don't like something, partly because of cultural reasons where making a fuss in public is discouraged/shamed, partly because of legal reasons where a company can sue your or at least send you scary legal letters for libel if you damage their brand online like that in Germany. Or at lest, the company can simply demand the social media platform take down the offending posts, and by German law they have to comply which the likes of Google/Meta will comply automatically without any arbitration.
Also, culturally, the conservative Germans seem to have have gaslit themselves into believing everything "Made in Germany" is perfect without fault, while everything made abroad is of poor quality or at least worthy of scrutiny, so they just default to using German products without looking across the fence to check out the foreign competition. This way of thinking is more typical of manufactured goods but not sure how much it applies to SW products and services.
Couple these with the difficulty of starting and scaling a business in Germany as a small entrepreneur and with the legal and bureaucratic hoops designed to keep foreign competitors out, mean that German companies operating in Germany who became established players, have litte incentive to improve beyond the bare minimum, so they can keep providing poor quality services while still staying in business. It's classic of an economy of well connected dinosaurs sitting on old money.
> [...] so customers who got screwed need to sue and win individually for the same issue which is favorable for the companies doing the screwing as without the precedent of common law
This is factually false.
> (some) Rental agreements, internet, telco and gym memberships are my favorite infamous examples. They're almost universally regarded as anti-consumer, with tonnes of sketchy clauses, but German lawmakers do nothing to improve that for the consumer.
Any examples here? The fact that contracts like these, if you forgot to cancel them, can only renew for one month is better than anything I've seen anywhere else. Also that you must be able to cancel anything online with the click of a button if the contract was made online. Add that to the fact that any clause is worthless if it includes something a reasonable person wouldn't expect. I don't know many countries that actually enforce this - Germany does all the time.
That's true in probably every jurisdiction, though? At least in Germany you can often get free legal advice for many things (Verbraucherschutz, Mietrechtsberatung etc.) and there's insurance you can buy that covers your legal fees in case you lose. And legal fees in Germany are typically not exorbitant.
(Also in some cases, it's the other way around. If your landlord wants to increase the rent it's on them to sue you if they have a valid case.)
Legal advice and reality in Germany are 2 different things. The truth is that dealing with any kind of legal situation in Germany is a huge headache and all you get in the end is to prove you are right and get what should be yours anyway, without any additional compensation for your trouble. And many companies use this to abuse the system. The landlord can steal a small part of your deposit, you can only sue. But nobody's going to go through this hell for, say, €100, so the landlord gets to keep €100. Of course you can sue, but it will cost you a lot more than 100€ (even with insurance there is usually a deductible of 300€+) and it will take at least a year. And pretty much everything works this way.
In theory. But if the landlord is hiding (or, more accurately, if the bailiffs don't do their job), you end up paying for everything. But good news! The court order is valid for 30 years, so you might get it all back in the end (probably not).
Initial contract terms can be longer (up to 24 months) and as the site points out, the new rules only apply to new contracts, others can be up to annual.
Thanks for the link, and as I suspected, it is a very recent thing
> Regulations for fairer consumer contracts are on the 1. March 2022 came into force and ensure that you can terminate automatic contract renewals for contracts for regular goods deliveries and services (such as streaming services or magazine subscriptions) more quickly.
> In addition, the 1st was founded. July 2022 a termination button duty introduced to simplify termination processes.
> partly because of legal reasons where a company can sue your or at least send you scary legal letters for libel if you damage their brand online like that in Germany. Or at lest, the company can simply demand the social media platform take down the offending posts, and by German law they have to comply which the likes of Google/Meta will comply automatically without any arbitration.
I had Google take down my (negative but factual) review of a restaurant because of apparent "libel". There was basically no recourse (except "you can file a complaint but we'll probably ignore it"). I guess that explains why there are so many bad top rated restaurants.
> Government provided customer protection laws are quite lax
I have the opposite perception. Most of the customer-screwing business practices I constantly see in other countries don't exist in Germany, because nobody even dares trying them.
There is a huge amount of protection for renters, a lot of things are simply illegal to put into the rental agreement and are automatically void. I really have no idea what you're talking about here.
Oh, and there are SCHUFA and debt collectors. Let's say a clause is invalid, but they gave you a bill with a due date. You can't ignore it or you'll get a bad SCHUFA or someone from a debt collection agency will knock on your door. This happened to a friend of mine recently ;( Then it's again your problem to prove that you are right. And it's once again a bureaucratic hell.
What if it's money you've already paid that someone won't give you back (while free or paid legal advisers tell you you're right)? It all ends with "you have to go to court". Yes, there is a chance that the other side will settle out of court. But usually they don't because going to court is a very expensive and long process and they don't think you'll do it (and most don't). And then it's just endless bureaucratic hell.
And if it's about the apartment, you've probably paid a deposit. And if you ignore some of the clauses, they will probably try to get back at you and punish you by not returning the deposit (or part of it). From here - GOTO 1 ;(
In which country is any of this different? Yes, if somebody is trying to scam you you may have to be prepared to go to court. I don't understand how else you're expecting a legal system to work.
But you keep insisting that there are rules to protect you. That's not true at all. Yes, there are rules, but you always have to prove that you are right/not guilty. In Germany the system is that you are guilty until proven innocent. You always have to prove that there's a regulation that proves you're right/not guilty, not the other way around. And you can't just ignore some clauses just because you think (or some legal advice tells you) you're right. You'll just end up with a lot of problems.
I've already given you many examples of how the system doesn't work in your favour by default, all the things that have happened to me or people I know in recent years. But if you want to believe in a "great" German system - that's your choice.
> Or simply because the alternative is being homeless?
As I already mentioned, you can simply sign a contract and then proceed to ignore all the illegal clauses. They're not binding.
> And why should the default for foreigners be getting screwed?
People getting screwed because of them not knowing their rights is basically something that can happen in every legal system, and if people come from other countries without certain legal protections, they're more likely to not know about them. That's just a reality of life.
as much as we like to hammer on EU (lack of) companies, one potential improvement point is customer service
German companies are awful at customer service. Even within the EU