In a significant decision delivered on 29 July 2024 in Case C-774/22, FTI Touristik (International element), the Court of Justice of the European Union (CJEU) ruled that a consumer who has booked a trip abroad may sue the organiser before the court of the place of his or her domicile.

This landmark judgment addresses the jurisdictional challenges in consumer contracts involving international travel, ensuring enhanced legal protection for consumers within the EU.

Facts

• A consumer residing in Nuremberg, Germany, entered into a contract with FTI Touristik, a tour operator based in Munich, Germany, for a trip abroad.
• The consumer claimed inadequate information was provided regarding entry conditions and visa requirements for the destination country. Consequently, the consumer filed a lawsuit for damages before the Local Court of Nuremberg. FTI Touristik challenged the jurisdiction of this court, arguing that the Brussels Ia Regulation does not apply since both parties are domiciled in the same Member State.

Legal Issue

• The central issue before the Court was whether Article 18(1) of Regulation (EU) No 1215/2012 (the “EU Regulation”) allows a consumer to sue the organiser in their local court when both parties are domiciled in the same Member State, but the destination of the travel is abroad.

Judgment

The CJEU ruled affirmatively, stating that:

• International Element: The Court found that the international element required for the EU Regulation’s application is present when the travel destination is abroad. This international element suffices even if both the consumer and the organiser are domiciled in the same Member State.
• Jurisdiction Over Consumer Contracts: Article 18(1) of the EU Regulation not only determines international jurisdiction but also confers territorial jurisdiction directly on the court of the consumer's domicile. This ensures that the consumer, as the weaker party, can bring an action against the stronger party before an accessible court.
• Consumer Protection and Legal Certainty: The ruling emphasizes the Regulation’s aim to provide legal certainty and consumer protection, allowing consumers to sue in a forum that is predictable and easily accessible.

Practical Implications

• For Consumers: Consumers are now assured that they can seek legal redress in their local courts, enhancing their protection and access to justice in disputes involving international travel.
• For Businesses: Tour operators must be aware of their obligations to provide accurate travel information and be prepared to face litigation in the consumer's local jurisdiction. This decision mandates better compliance and diligence in informing consumers about travel requirements.
• For Legal Practitioners: Legal practitioners should advise their clients on the implications of this decision, ensuring businesses comply with information requirements and preparing for potential jurisdictional challenges. They should also counsel consumers on their rights to bring actions in their local courts.

Economou & Co LLC’s comment

• The CJEU's decision underscores the protective measures within the EU Regulation aimed at ensuring consumers can litigate disputes in their local courts.
• This is particularly significant for consumer contracts involving international travel, where consumers often face complexities and additional burdens if required to sue in a foreign jurisdiction.