Changes
in the
Competition law.
Changes
in the
Competition law.
from
Numerous changes to competition law came into force on 28.05.2022. The Unfair Competition Act (UWG) has been reformed again in numerous places. We present the main changes to you.
New competition law
Following numerous changes to competition law in 2020 and 2021, the legislator has now reformed the Unfair Competition Act once again. The requirements from the EU directiveon better enforcement and modernization of consumer protection regulations are being implemented.
Here are the most important changes to the UWG:
Ban on dual quality
The background to Dual Quality is that, according to the EU Commission, in the past the same products, especially foodstuffs, have been offered at a lower quality, particularly in Eastern European countries. This dual quality for the same product for the consumer was no longer acceptable.
It is now misleading, to market a product in one Member State of the European Union as identical to a product in another EU Member State if these products differ significantly in their composition or characteristics. This only remains permissible if the difference is justified by legitimate and objective factors.
Manufacturers in particular are therefore not allowed to offer the same product with different characteristics in different EU countries. It is still unclear what exactly will be regarded as significant differences or legitimate factors. For example, food recipes are adapted to different tastes and eating habits in different countries, which does not necessarily mean poorer quality. It is also possible that manufacturers will no longer market goods in the same way in different countries, but may instead market them differently in the individual countries, making the differences in content clear.
Influencer
The requirements for the identification of advertising have been made more specific, which is particularly aimed at influencers on the internet. It was already the case that anyone who fails to disclose the commercial purpose is acting unfairly if this is not immediately apparent from the circumstances and the failure to disclose is likely to cause the consumer or other market participant to make a business decision that they would not have made otherwise.
What is new is when there is no commercial purpose. A commercial purpose does not exist in the case of an action in favor of a third-party company if the person acting does not receive any remuneration or similar consideration for the action from the third-party company or cannot be promised such consideration. However, it is assumed that such consideration was promised, so that the influencer must now credibly demonstrate that they did not receive any consideration.
In future, influencers will therefore have to prove that they have not received any consideration for reporting on a product or other product placement.
Rankings
Regulations on rankings are new to the UWG. Rankings or highlighted placements of offers in the results of online search queries and online marketplaces have a significant impact on consumers’ purchasing decisions.
Therefore, companies that display products in rankings are now obliged to provide information about the main parameters used to determine the ranking and the relative weighting of the main parameters used to determine the ranking compared to other parameters. This applies in particular to online marketplaces but also to online stores that display corresponding rankings for search queries. However, search engine operators are excluded.
The relevant information must be directly and easily accessible before the search result is displayed.
This is intended to create transparency for the consumer.
Reviews
Reviews and advertising with them have now also been regulated in the UWG. If reviews of goods and services are made available to consumers, the trader must provide information on how it ensures that the published reviews originate from consumers who have actually used or purchased the goods or services.
This is also intended to create transparency for the consumer regarding the “value” of the ratings.
Compensation for consumers
Previously, only competitors and authorized associations were entitled to competition law claims. With the changes to competition law, consumers now have a claim for damages against some culpable breaches of competition law. The limitation period for claims for damages has also been extended to one year.
Whether and to what extent consumers actually make use of this remains to be seen, but in cases where there are a large number of aggrieved consumers, there will certainly be attempts to assert them collectively or in a standardized manner.
Conclusion
The changes to competition law mean that affected companies, especially those that are active online, need to take action. The legal regulations are still unclear, so it remains to be seen how the courts will interpret some of the undefined characteristics in the new regulations.
It remains to be seen whether, as with air passenger rights, there will be legal techs for consumer claims for damages. In any case, companies must expect that they will also have to deal with consumers in the event of breaches of competition law in the future.
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