ImmoScout24 Sued by The Federation of German Consumer Organizations for Misleading Advertising

May 10, 2023
Share this Post: 

Germany-based real estate marketplace ImmoScout24 has had a lawsuit filed against it on the basis of misleading advertising.

ImmoScout24 subscribers can create online application portfolios when buying a property — including a Schufa credit report — which is now at the epicenter of a lawsuit.

The Federation of German Consumer Organizations (VZBV) has taken issue with the wording of ImmoScout's offer for implying that prospective buyers are obliged to produce a Schufa report before visiting a property—which the VZBV says is not the case.

It subsequently filed a lawsuit against ImmoScout24 and handed it over to the Berlin Regional Court.

Rosemarie Rodden, Legal Enforcement Advisor at VZBV, said the firm "considers this advertising to be misleading."

On its website, ImmoScout24 does not specifically say that a Schufa report is required but also fails to indicate that the report is not required, according to the VZBV.

VZBV asserts that ImmoScout24's implication that customers need to prove their creditworthiness this early in the process is against the law, with documents including Schufa reports only becoming a requirement when a rental agreement is near completion.

ImmoScout24 is Germany's number one real estate portal, with owner company Scout24 distributing dividends in excess of €66m last year. The firm also recently partnered up with financing firm Europace to introduce real-time financing solutions for buyers.

May 10, 2023
Harvey is an experienced property journalist and copywriter. He has written about the property industry since 2015, starting at The Property Franchise Group in the UK, before moving to Spain to work for Spotahome. He has blogged for the private rented sector, ghostwritten for UK property experts and written case studies for franchise owners around the UK. Harvey joined Online Marketplaces as a News Editor in 2022.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Rightmove Defends Price Hike as Agent Claims "No Choice" But to Pay 17% Extra

Rightmove certainly has a seat reserved at the top table of portals worldwide—if it isn't sat at its head already....

Read More
Exp Realty Ai
EXp Realty Launches AI Supported Chatbot and Announces Launch of "My Link, My Lead" Referral System

EXp Realty, the cloud-based brokerage based in the US, has launched the "My Link, My Lead" referral system that it...

Read More
Purplebricks Profit 1
Purplebricks Slashes Prices as New Owner Vows to 'Disrupt' Once Again

The new owner of Purplebricks has cut prices in his first move since snapping up the beleaguered portal for just...

Read More
Homesnap Closure
CoStar Group to 'Sunset' Homesnap in Favor of

CoStar is set to sunset Homesnap and replace it fully with the Group's in-house brand by the end of...

Read More

Editor's Pick