Known from… what actually?

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Awareness advertising is a powerful tool in a company’s marketing mix. This is why many websites include references such as “Known from” and then list various media. But is this actually permissible? The Hanseatic Higher Regional Court has commented on this widespread type of advertising.

A real estate portal for the mediation of real estate sellers to real estate agents advertised on its website with the statement

“Known from: Die Welt, ONLINE FOCUS, Frankfurter Allgemeine, N24, Der Tagesspiegel”

known from misleading advertising media newspapers radio television magazine competition law attorneyHowever, no references were given for corresponding reports, nor were any links provided. Furthermore, the real estate portal also advertised an average star rating without breaking down the ratings.

A competition association took action against this.

With regard to the star rating, the competition association argued that it was misleading to advertise with an average rating without stating how this was calculated. At the very least, a breakdown according to the star classes should be provided.

Advertising with “Known from…” with reference to media is also misleading without providing references. This is because the advertiser uses the familiarity from the leading media mentioned as a positive advertising effect. This could be classified as a quality feature, which is why, as with test results, references must be provided. This is the only way for the target audience to understand whether it is reporting or even just paid advertising in these media.

Court “known from” Hamburg

The OLG Hamburg granted the competition association with Judgment of 21.09.2023 – Ref. 15 U 108/22 partly law.

The consumer understands advertising with the statement “Known from…” to mean positive or neutral reporting, but not negative reporting. Similarly, the consumer does not assume that this advertising refers only to advertisements placed in the media mentioned.

It is therefore necessary to provide a reference to the editorial reporting. The targeted public has an interest in being able to understand on what occasion, in what way and also when the relevant medium reported. Without this information, the advertising statement could not be classified. This is essential information, the withholding of which is misleading.

The Hamburg higher regional court judges took a different view on the question of the breakdown of the star ratings. Such information was useful, but not essential. It was sufficient if the number of ratings was stated next to the average.

Conclusion

Advertisements with “known from” can be found on a large number of websites, although there are often doubts as to whether there was actually coverage in these media.

The OLG Hamburg makes it clear that such advertising is only permissible if there is positive or neutral reporting in the media mentioned and corresponding references are provided. Buying a media mention by placing advertisements does not make such advertising permissible.

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