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Germany - Amendments to Unfair Competition Law

Amendments of the Act Against Unfair Competition became effective on August 1, 1994 and are seen as an attempt by Germany to avoid conflict with EU rules on the free movement of goods and to counteract abuses of the unfair competition laws by some businesses and trade groups. The principal features of the amendments include the following:

1) The amended law repealed the prohibition on advertising that only a limited quantity of sale items could be sold per customer or that wholesalers were not entitled to purchase such items.

2) The provision that prohibited references or implications in advertising to earlier, higher prices in comparison with sale prices was also repealed. Advertisers may now compare sale prices with prices previously charged for goods.

3) Limited-time special offers with respect to specific goods are now permitted.

4) In order to have standing to bring an action for unfair competition a business must now be active in the same market (which includes geographical proximity) as the defendant.

5) Acts of alleged infringing conduct must now impair competition substantially to be actionable under the amended law.

6) A trade association may bring an action for unfair competition in its own name only if a considerable number of its members are actively engaged in the same or similar business as the one affected by the unfair conduct; this is intended to prevent actions by associations whose true intent is to earn revenue by suing for technical breaches of the unfair competition laws.


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