The fact that not only fashion chains, restaurants or department stores can become insolvent, but also commercial suppliers of dental aligners, has been demonstrated, among other things, by the examples of “Smile Me Up” and “Smile Direct Club”. These may not be the last bankruptcies on the market. What rights do customers have?
The most important thing in summary:
- The first point of contact in the event of your supplier’s bankruptcy is the insolvency administrator. Treatment contracts generally continue to exist despite insolvency proceedings. However, when making new aligners, the insolvency administrator has the right to choose whether the contract should continue to be executed.
- Consumers can make claims for refunds due to the end of their treatment on the insolvency table, but should be prepared to receive only a fraction of the money back after a few years.
- There are useful forms and factsheets for registering your own insolvency applications, which will make it easier to execute your applications.
Who is my contact if my provider suddenly goes out of business?
If insolvency proceedings have been opened over the provider’s assets, the authority to dispose of them is transferred to the insolvency administrator. From this point onwards at the latest, the insolvency administrators are the first point of contact for all matters relating to the company.
Can I still continue treatment despite bankruptcy?
Medical treatment contracts are legally considered service contracts, which is why they initially continue to exist regardless of insolvency in accordance with Section 108(1) of the InsO. However: When it comes to treatments with aligners, it has not yet been conclusively clarified whether these are purely treatment contracts, as we know them in the doctor’s office. Individual parts of the contract, such as the production and delivery of the denture splints, could also be attributed to employment contract law, which would mean that the insolvency administrator could decide on the continuation of the contractual relationship in accordance with Section 103(1) of the InsO.
I paid in advance for my device but never received it. What should I do now?
Contact the insolvency administrator and ask him to comment on the performance of the contract. By law, he must comment on this within a short period of time. If he informs you that he can no longer or does not wish to perform the contract, you may be able to assert your claim regarding the production and delivery of the dental aligners as an insolvency action (Section 103 Para. 2 InsO).
Can I terminate the treatment contract due to insolvency?
As long as the insolvency administrator still has the right to choose to require the mutual continuation of the contract, the right of termination or rescission for consumers is in principle excluded.
If the insolvency administrator finally decides to cease to fulfil the mutual contract, i.e. to cease to carry out any outstanding treatment steps, you can assert your statutory rights of termination or rescission (§ 627 BGB or §§ 323 para. 1, para. 2 no. 1 GB).