Amazon Dash Button Breaches Consumer Protection Law, German Court Rules

In 2015, Amazon revolutionized online shopping by introducing the Amazon Dash button. The tiny plastic button made its way into consumers’ homes and made ordering online faster by communicating directly with the Amazon shopping app.

The device now comes with Alexa built in; it can scan barcodes and send shopping lists to Amazon’s online grocery store and can even be configured to control home lighting systems.

While some might consider it a life saver, the smart appliance may no longer be available in Germany after a court ruled that it violates consumer protection legislation, Reuters reports. This spells serious trouble for Amazon in the region, as Germany, UK and France drive the development of the smart home market in Europe, according to a researcher from Osservatorio Internet of Things, School of Management, Politecnico di Milano.

The complaint, filed by a German consumer watchdog, claims customers using the Amazon Dash button are not shown the exact price they pay for the purchase before the transaction is complete, in violation of consumer protection legislation.

“We are always open to innovation. But if innovation means that the consumer is put at a disadvantage and price comparisons are made difficult then we fight that,” Wolfgang Schuldzinski, head of the consumer body, said in a statement.

“Today’s ruling is not only hostile to innovation. It also stops customers from making an informed decision about whether a service like the Dash button gives them a convenient shopping experience,” Amazon said in response to the decision.

Amazon wants to appeal the decision but, if it still wants to do business in Germany, it has to reconfigure the tool to make sure customers are informed about the price before the transaction goes through.