December 2025 brought a series of noteworthy judgments from the Court of Justice of the European Union (CJEU), shaping key aspects of consumer law. These decisions not only clarify the interpretation of EU directives and regulations but also reinforce fundamental principles such as consumer protection, legal certainty, and market fairness. Below is an overview of the most relevant rulings delivered in the last month (end of November and December to date), highlighting their practical implications for businesses, consumers, and regulators across the EU.
Consumers Cannot Be Burdened with Disproportionate Court Costs After Contracts Are Annulled for Unfair Terms
On 27 November 2025, the CJEU clarified the scope of Articles 6(1) and 7(1) of Directive 93/13/EEC, read in light of the principle of effectiveness, in a case concerning the allocation of court costs following the annulment of a consumer credit agreement containing unfair terms. The case (C-746/24), referred by the Regional Court of Warsaw, arose from an action brought by Bank Millennium SA seeking restitution of the loan capital after a Swiss-franc-denominated loan agreement had been declared invalid at the consumer’s request. The Court held that EU law precludes national legislation under which a consumer, acting as defendant, may be ordered to bear court costs significantly higher than those applicable had the consumer been unsuccessful in an action brought on their own initiative to challenge the unfair terms. Such cost asymmetry is liable to deter consumers from exercising or defending their EU-law rights, undermining both effective judicial protection and the deterrent effect of Directive 93/13. While reaffirming Member States’ procedural autonomy, the judgment requires national courts to interpret domestic cost rules in conformity with EU law so as to avoid disproportionate financial burdens on consumers, thereby reinforcing consumer protection, legal certainty and the effectiveness of judicial review in unfair-terms litigation.
Order for Payment Procedures May Limit the Effects of Unfair Terms Review, Provided Consumers Retain Full Judicial Protection
On 27 November 2025, the CJEU ruled on the compatibility of Spanish order for payment procedures with Articles 6(1) and 7(1) of Directive 93/13/EEC, interpreted in light of the principle of effectiveness, in a case concerning the ex officio review of unfair contractual terms and the procedural rights of consumers. The case (C-509/24), referred by the Court of First Instance and Preliminary Investigations No 3 of Arucas (Spain), arose from an application by Investcapital Ltd for an order for payment based on a bank account contract concluded with a consumer. The Court held that EU law does not preclude national legislation under which the court, in expedited order for payment proceedings, may merely propose a reduction of the claimed amount by excluding sums derived from terms considered unfair, without formally declaring those terms void, nor prevent the creditor from pursuing the excluded amounts in subsequent proceedings. Such a system is compatible with Directive 93/13 provided that the consumer can obtain, in other proceedings, a declaration of invalidity of the unfair term and that the order for payment does not produce res judicata effects. The Court further ruled that EU law does not require consumer participation at this preliminary review stage, as long as the principle of audi alteram partem is fully respected in later inter partes proceedings. The judgment thus confirms Member States’ procedural autonomy in designing summary recovery mechanisms, while reaffirming that effective consumer protection must ultimately be ensured through access to full judicial review of unfair terms.
Territorial Jurisdiction for Collective Damages Actions Arising from Anticompetitive Conduct on Online Platforms
On 2 December 2025, the CJEU clarified the interpretation of Article 7(2) of Regulation (EU) No 1215/2012 (Brussels I bis) in the context of representative actions for damages arising from alleged anticompetitive conduct on digital platforms. The case (C-34/24), referred by the District Court of Amsterdam, concerned collective actions brought by two Dutch foundations against Apple Distribution International Ltd and Apple Inc., seeking compensation for damage allegedly suffered by users of the App Store in the Netherlands due to the imposition of excessive commissions in breach of Articles 101 and 102 TFEU. The Court held that, where an online platform is specifically directed at the market of a Member State, the place where the damage occurred corresponds to the entire territory of that State, even if individual purchases were made online and the users are unidentified but identifiable. Consequently, any court in that Member State having substantive jurisdiction may exercise both international and territorial jurisdiction over a representative action covering all affected users, regardless of their precise location within the State. This approach ensures proximity, predictability and sound administration of justice, avoids fragmentation of jurisdiction and facilitates effective enforcement of competition law in the digital economy, while confirming that collective redress mechanisms do not alter the application of Article 7(2) but may justify a centralised jurisdictional solution.
Subsequent Targeting of a Consumer’s Member State Does Not Alter the Law Applicable to an Existing Contract
On 4 December 2025, the CJEU clarified the interpretation of Article 6(1) of Regulation (EC) No 593/2008 (Rome I), read in conjunction with Article 3, in a case concerning the temporal scope of consumer protection rules in cross-border banking relationships. The case (C-279/24), referred by the Oberster Gerichtshof (Austria), arose from a dispute between AY, a consumer residing in Italy, and Liechtensteinische Landesbank (Österreich) AG, regarding losses allegedly suffered in connection with financial products purchased under an ongoing contractual relationship governed by Austrian law. The Court held that Article 6(1) does not apply where the professional did not pursue or direct its activities to the consumer’s Member State at the time the contract was concluded, even if such targeting occurs subsequently during the contractual relationship. Allowing the applicable law to change retroactively would undermine the predictability of conflict-of-law rules, the principle of legal certainty, and the freedom of choice enshrined in Article 3, which constitutes a cornerstone of Rome I. The CJEU further confirmed that later financial transactions carried out under an existing framework agreement do not, in themselves, constitute a new contractual relationship capable of triggering Article 6. The judgment thus reinforces that consumer protection under Rome I is determined at the moment of contract formation, preventing ex post reclassification of the applicable law based on later market-targeting conduct.
Submission of a Set-Off Declaration Cannot Imply Waiver of Limitation Defense in Unfair Loan Litigation
On 11 December 2025, the CJEU clarified the scope of Article 7(1) of Directive 93/13/EEC, read in light of the principle of effectiveness, in a case concerning the procedural consequences of annulment of a consumer mortgage loan contract containing unfair terms. The case (C-767/24, Kuszycka), referred by the Sąd Okręgowy w Warszawie (Poland), arose from restitution proceedings brought by mBank S.A. against a consumer, ML, seeking repayment of the loan capital after the contract had to be declared void, despite the bank’s claim being time-barred under national law. The Court held that EU law precludes national case-law under which the consumer’s submission of a declaration of set-off is automatically treated as an implied waiver of the objection that the seller’s claim is time-barred, even where that objection is raised expressly and simultaneously. Such an interpretation is liable to deter consumers from exercising procedural rights, undermine the dissuasive effect of the prohibition of unfair terms, and allow the seller or supplier to benefit from its own unlawful conduct. The CJEU emphasised that a waiver of limitation cannot be presumed without verifying the consumer’s free and informed intention, regardless of legal representation, and confirmed that national courts must disapply incompatible case-law in order to ensure effective consumer protection and the full effectiveness of Directive 93/13.
Distributors May Be Sanctioned for Incorrect Nicotine Labelling, but Flat-Rate Fines Breach the Principle of Proportionality
On 11 December 2025, the CJEU clarified the interpretation of Articles 23(2) and 23(3) of Directive 2014/40/EU, read in conjunction with Article 2(40) and Article 20(4)(b)(i), in a case concerning administrative penalties imposed on distributors of refill containers for electronic cigarettes bearing incorrect indications of nicotine content. The case (C-665/24), referred by the College van Beroep voor het bedrijfsleven (Netherlands), arose from fines imposed on Diamond Flavours BV and UEG Holland BV for supplying refill containers to retail outlets where the nicotine content indicated on the unit packets exceeded the actual content. The CJEU held, first, that the obligation to ensure that non-compliant products are not placed on the market applies at all stages of the supply chain, including the supply by distributors to retail outlets, and is not limited to sales to consumers. Secondly, the Court ruled that while strict liability regimes and fines of a criminal nature may be compatible with Directive 2014/40 in light of the objective of ensuring a high level of health protection, national legislation imposing flat-rate fines that cannot be adjusted to reflect the seriousness of the breach and the individual circumstances of the case is disproportionate and therefore precluded by EU law. The judgment thus confirms broad enforcement powers against distributors, while reaffirming that penalty systems must respect proportionality and cannot disregard the concrete gravity of the infringement, even where consumer health protection is at stake.
National Regulatory Authorities May Impose Broad Information Obligations on Parcel Delivery Operators, Subject to Proportionality
On 18 December 2025, the CJEU clarified the scope of the powers of national regulatory authorities (NRAs) in the postal sector under Regulation 2018/644 and Directive 97/67 in a case concerning general and symmetrical obligations to provide information imposed by the Italian authority AGCOM on parcel delivery service providers. The case (C-345/24), referred by the Consiglio di Stato (Italy), arose from challenges brought by several operators against regulatory measures requiring disclosure of information on pricing conditions, contractual arrangements with undertakings contributing to the provision of services, and the economic and legal conditions of workers, including subcontracted labour. The CJEU held, first, that Regulation 2018/644 applies to all parcel delivery service providers, irrespective of whether the services concerned are domestic or cross-border, save for specific exclusions. Secondly, the Court distinguished ex ante regulatory powers aimed at monitoring markets and preventing distortions of competitionfrom the ex post application of competition law, holding that the former may justify broad information requestsenabling a forward-looking assessment of market conditions. Lastly, the CJEU ruled that Articles 22 and 22a of Directive 97/67 and Article 4 of Regulation 2018/644 do not preclude an NRA from imposing such obligations, provided that they are suitable to ensure the performance of the authority’s tasks, necessary for that purpose and proportionate, in that they do not impose an undue administrative burden on operators, the assessment of proportionality being a matter for the referring court.
Res Judicata Cannot Prevent Ex Officio Review of Unfair Penalty Clauses After Cassation
On 18 December 2025, the CJEU clarified the scope of Articles 6(1) and 7(1) of Directive 93/13/EEC, read in light of the principle of effectiveness and Article 47 of the Charter, in a case concerning the ex officio review of unfair contractual terms in proceedings remitted following cassation. The case (C-320/24), referred by the Corte suprema di cassazione (Italy), arose from litigation between two consumers and a property developer admitted to insolvency proceedings, relating to the termination of a preliminary contract for the sale of immovable property and the validity of a penalty clause allowing the seller to retain advance payments in the event of non-performance. The Court held that EU law precludes national procedural rules under which the principle of res judicata prevents a national court, to which a case has been remitted following cassation, from examining of its own motion the unfairness of a contractual term, where neither the consumer nor the national courts had previously carried out such a review. Such an approach is liable to render consumer protection ineffective, allow unfair terms to be treated as implicitly valid without any reasoned judicial assessment, and undermine the dissuasive effect of Directive 93/13. The CJEU emphasised that the obligation to review unfair terms cannot be neutralised by rules on finality, even where the consumer raised the unfairness only at a late stage of the proceedings, and confirmed that national courts must disapply procedural rules that make the exercise of consumer rights impossible or excessively difficult.
Margin Squeeze Analysis Requires Dominance on the Upstream Market and a Substitutability-Based Market Definition
On 18 December 2025, the CJEU clarified the interpretation of Article 102 TFEU in a case concerning the assessment of an alleged margin squeeze by a vertically integrated undertaking active in the wholesale fuel market, with potential adverse effects on competition and consumer welfare. The case (C-260/24), referred by the Administrativen sad Sofia-oblast (Bulgaria), arose from proceedings between Lukoil Bulgaria EOOD and the Bulgarian competition authority concerning a finding of abuse of a dominant position based on pricing practices whereby fuel sold after payment of excise duty was priced below fuel sold under an excise duty suspension arrangement. The Court held that, in order to establish a margin squeeze, a competition authority must demonstrate the existence of a dominant position on the upstream market, on the basis of market shares or other relevant structural characteristics, and must show that the prices applied on a linked downstream market are capable of producing an exclusionary effect on competitors that are at least as efficient as the dominant undertaking, to the detriment of effective competition and ultimately of consumers. The CJEU further ruled that only products displaying a sufficient degree of substitutability may be included in the same relevant product market, and that while fuels such as petrol and diesel may be grouped together at wholesale level depending on storage and supply conditions, the exclusion of LPG must be objectively justified by differences in infrastructure, transport or regulatory requirements, which it is for the national court to verify.
Trade Marks Corresponding to Designers’ Names May Be Revoked if Their Use Misleads Consumers as to Creative Origin
On 18 December 2025, the CJEUclarified the interpretation of Article 12(2)(b) of Directive 2008/95 and Article 20(b) of Directive (EU) 2015/2436 in a case concerning the revocation of trade marks liable to mislead the public following their assignment. The case (C-168/24), referred by the Cour de cassation (France), arose from proceedings between PMJC SAS and the designer [W] [X], [M] [X] and [X] Créative SAS, his heirs and a related company, concerning the use of trade marks corresponding to the designer’s surname in such a way as to make the public believe that he was still involved in the design of the goods bearing those marks. The Court held that EU law does not preclude the revocation of a trade mark consisting of a designer’s name where, having regard to all the relevant circumstances, the use made of that mark gives rise to actual deception or a sufficiently serious risk of deception as to the creative origin of the goods, even though the mere fact that the designer is no longer involved is not, in itself, sufficient. The CJEU emphasised that the assessment must focus on the perception of the average consumer, that creative origin may constitute a relevant product characteristic capable of misleading the public, and that trade mark protection cannot be used as an unfair instrument to attract consumers by fostering a false belief as to the designer’s involvement.
Royalties Charged by Copyright Collecting Societies Must Reflect Hotel Room Occupancy to Avoid Unfair Prices under Article 102 TFEU
On 18 December 2025, the CJEU clarified the interpretation of Article 102(a) TFEU in a case concerning the calculation of copyright royalties by a collective management organisation in a dominant position. The case (C-161/24), referred by the Krajský soud v Brně (Czech Republic), arose from proceedings between OSA, z.s., a copyright collective management organisation, and the Czech competition authority concerning fines imposed for charging hotel establishments royalties calculated without taking account of room occupancy rates. The Court held that EU law does not preclude finding an abuse of dominant position where royalties are calculated on a flat-rate basis that ignores actual or foreseeable occupancy, since the economic value of the licence depends on the scope of actual use, and such a method may lead to unfair prices within the meaning of Article 102(a) TFEU. The CJEU emphasised that the assessment must consider all relevant circumstances, including the feasibility of taking occupancy into account, that no proof of direct consumer harm is required where the practice is capable of impairing the competitive structure, and that an appreciable effect on trade between Member States may be established where the collecting society also manages the rights of foreign rightholders, thereby potentially affecting consumers and market conditions beyond the national level.