The Bundeskartellamt conducted a sector inquiry on credit scoring in the online retail sector, revealing that online retailers, payment service providers, and credit bureaus do not always comply with consumer law provisions. Credit checks are commonly used to assess customers' credit standing and determine payment options, but lack transparency and clear information for consumers.

While credit scoring is economically beneficial for businesses and consumers by reducing payment defaults, the processing of personal data must adhere to data protection and fair trading laws. The Bundeskartellamt identified potential consumer law violations and the need for improvement in transparency and data processing legitimacy.

The inquiry found that information about credit checks is often not transparent or provided after the check, leaving consumers unaware and unable to prevent it. Data processing for credit scoring must be justified under data protection rules, with customer consent required when companies lack a legitimate interest in processing data.

Businesses exchange and process large amounts of customer data for credit checks, including payment history, address, age, and other personal information. The inquiry questions the necessity of processing certain data and highlights the importance of observing data minimization principles.

The Bundeskartellamt's inquiry under consumer protection powers aims to address violations of consumer law in credit scoring practices. Discussions are ongoing to potentially strengthen the Bundeskartellamt's enforcement powers in consumer protection, similar to its competences in competition law.