Fatrollin' Through Internet Insurance Comparison: ECJ Smacks Down Huk-Coburg in Favor of Check24
Online Insurance Comparison Verdict: European Court of Justice Sides with Check24 - Online Insurance Rate Comparison Ruling: ECJ Sides with Check24
Here's the lowdown on a recently game-changing court decision regarding digital insurance rate hunts. The grand spiel comes from the European Court of Justice (ECJ), which took a gander at a squabble between insurance behemoth Huk-Coburg and the comparison website, Check24.
Check24, as you might've guessed, is a platform that compares insurance offers based on various criteria and assigns grades. Huk-Coburg claimed this grading system was a no-no when it comes to comparative advertising.
EU law generally digs comparative advertising, but, being the sticklers they are, they drew a line. The European Court of Justice (ECJ) got the first crack at deciding if a grading or point system—like the one Check24 uses—can pass muster under those conditions. However, instead of answering that question directly, the ECJ took a step back.
They first asked themselves if an online comparison service is hooligan enough to be considered comparative advertising. For this, they considered whether the provider might compete with the insurance company.
The regional court has to figure out if Check24 and Huk-Coburg are combatants, i.e., whether they're rolling in the same rally. To do that, they'll need to determine whether their respective services are interchangeable, which means whether they're battling it out on the same battleground.
After examining the files, the ECJ gave their two cents. Check24 isn't an insurance company, they reasoned. The digital pit stop simply compares rates and sets up meetings with the insurers. So, it's safe to assume these companies aren't hitting the same market.
The specific legal tussle is now back in the hands of the Munich court. They'll make their call, all while keeping the ECJ's assessment firmly in mind.
Fun facts:
- Check24's rating system categorizes insurance policies using a numeric scale (1.0 to 4.0).
- The ECJ recognizes that Check24's system includes transparent scoring parameters, categories that change according to the insurance class, and symbols that indicate quality levels (e.g., top-notch, average, subpar/not insurable).
- Check24 made changes to their rating system in response to earlier national court decisions, adding more information for consumers about how grades are calculated.
- ECJ considers Check24's system as permissible comparative advertising under EU law, mainly because Check24 isn't a competitor running in the same market as the insurance company Huk-Coburg.
- The European Court of Justice (ECJ) has determined that Check24, an online platform that compares insurance offers based on various criteria and assigns grades, is not considered as engaging in comparative advertising against insurers like Huk-Coburg.
- The ECJ recognized Check24's rating system as transparent, with scoring parameters, categories that change according to the insurance class, and symbols indicating quality levels.
- In response to earlier court decisions, Check24 added more information to their rating system, providing consumers with details regarding how grades are calculated.
- The specific legal case between Check24 and Huk-Coburg has been shifted back to the Munich court, with the ECJ's assessment serving as a guiding principle for their decision.
