Towards a Uniform Interpretation of the Scope and Effects of EU Legal Tender in B2C Transactions

Consumers are increasingly faced with unilateral exclusions of legal tender banknotes and coins in B2C transactions. While Member States diverge on whether legal tender may be refused based on national contract law, such fragmentation hinders the adoption of a uniform EU interpretation. Based on a textual and systematic analysis of EU law, this article advances a uniform interpretation of the scope and effects of legal tender and examines to what extent freedom of contract may impose limitations on the mandatory acceptance of legal tender. It argues that consumers enjoy a subjective right to enforce the acceptance of legal tender unless refusals are objectively justified. Unilateral exclusions of legal tender, such as ‘no cash’ policies, are considered non-binding on consumers. The article argues that this interpretation constitutes a legitimate restriction on the freedom of contract of businesses protected under Article 16 CFR, requiring national courts to disapply conflicting national contract law provisions.