What actually
is an
Outlet?
What actually
is an
Outlet?
from
What is actually meant by an “outlet” and what expectations does the consumer have of it? The Regional Court of Stuttgart examined this question and restricted the use of the term for online stores.
What is it about?
An online retailer operates a so-called shopping club. In addition to clothing, the online retailer also sells perfumes and nail polish. There is an “Outlet” section in the store. There it says:
Children’s shoes, children’s clothing & more – buy cheap in the … outlet store.
The outlet store from l. is new, the outlet store from … is different! Similar to a warehouse sale or factory outlet, you will find lots of remaining stock brands, end-of-season goods and special collections of well-known trademarks at incredibly low prices in our outlet. Discounts of up to -80% compared to the manufacturer’s RRP are possible – you’ll find something for the whole family here!
Outlet prices right from the start – baby clothes & co greatly reduced
Trademarks, trademarks, trademarks – as far as the eye can see!
The biggest advantage of buying from our outlet? The prices, that much is clear, but if you’re not looking for cheap discount quality, but rather trademark quality at low prices, you can’t go past our brand outlet! Our top trademarks, from which we always have the latest collections in the outlet, include Vero Moda, Tom Tailor, s. Oliver, Belmondo, Marco Tozzi, Mexx and the cool shoes, bags and jewelry from Jette Joop. And that’s just the women’s fashion and shoes section! If you are on the hunt for cheap trademark outlet bargains for your children or your baby, you are 100% sure to find what you are looking for in our store: for example, do you know Lego Wear, the great, colorful children’s clothing for boys and girls? Or the cute children’s clothes from Felix the Bunny. The right trademark is also important for baby clothes: Sanetta is really good brand quality that you can hardly buy so cheaply anywhere else. Just like Käthe Kruse and other top trademarks from the toddler and baby sector. For example Richter children’s shoes or trendy changing bags.Our promise: low outlet prices, fast delivery and top service
In fact, the prices were up to 70% below the manufacturer’s recommended retail price.
A manufacturer of perfumes and nail polish, which were also offered in the store, considered the advertising with “outlet” to be misleading. An “outlet” is understood to be a warehouse/factory outlet, i.e. a sales outlet in which a manufacturer sells its own products, which are also sold in the wholesale and retail trade, directly to end customers, excluding the retail trade. By eliminating the retail trade, the customer therefore assumes a price advantage resulting from the lack of margins for the trade.
Decision of the Regional Court of Stuttgart on “Outlet”
The Regional Court of Stuttgart(judgment of 31.03.2015 – Ref. 43 O 1/15 KfH) ruled in favor of the manufacturer and prohibited advertising under the heading “Outlet”.
An average attentive, informed and reasonable consumer understands the term “outlet” in the sense of a factory outlet by the manufacturer itself, even if only the term “outlet” is used without the addition of “factory”. It is not necessary for all consumers to understand the term “outlet” in the traditional sense of “factory outlet” for it to be misleading. It is sufficient that a not insignificant proportion of the consumers addressed assume the classic meaning of the term.
Precisely because the term “outlet” is associated with the positive idea of a low-priced direct sale by the manufacturer, retail companies have in the meantime adopted the term “outlet” as an effective advertising message instead of using terms such as “sale” or “sale out”. The use of the term “outlet” (even without “factory”) creates a relationship with the manufacturer, but this is not actually the case. With the use of the term “outlet”, the online retailer is attaching itself to the particularly effective advertising idea of the consumer that a manufacturer is selling something particularly cheaply. In fact, however, the goods did not come directly from the manufacturer, but from a normal retailer offering remaining stock.
Conclusion
The decision of the Regional Court is in line with a decision of the Federal Court of Justice on the term “outlet“. Online retailers should therefore be extremely careful when using the term “outlet” if they do not want to receive a cease and desist letter .
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