Overview

This paper deals with the abolition of the general ban on bonuses in Austria, which constituted a violation of an EU directive. The Supreme Court subsequently ruled that a bonus is only inadmissible if it is misleading, aggressive or otherwise unfair, applying such a high standard in assessing consumer behaviour that it is significantly stricter than that provided for by the EU in the relevant directive. This paper therefore examines whether the current situation in Austria complies with the mandatory requirements of the EU, in particular by reviewing the relevant legal texts and, in particular, by critically examining the key decisions of the European Court of Justice, the Austrian Supreme Court and the German Federal Court of Justice. The findings of this paper are that the current legal situation, based on the consumer model, both violates Community law and has serious negative effects in practice.

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