Fundamentals of Competition Law
Competition law protects consumers and businesses alike. It ensures that advertising is fair and truthful. The goal is to guarantee equal opportunities in the marketplace and prevent misleading business practices. This creates a transparent framework in which all market participants can compete on equal terms. Below, you will learn more about the key principles and legal requirements.
What Is Competition Law? Purpose and Importance
Also known as unfair competition law, competition law aims to ensure fair competition in the interest of all market participants—especially end consumers—by setting clear rules. It governs how advertising may be designed, regardless of the communication channel used. Companies that advertise with incomplete or false information can be subject to warning letters not only from consumers or associations but also from competitors. Industry groups often monitor such warnings for their members within certain market segments.
Misleading Advertising and Legal Risks
Companies can defend themselves against unfair practices by competitors. However, your own company may also become the target of warning letters or lawsuits if competitors or consumer protection organizations challenge unfair advertising. Examples include factually incorrect statements on your website or other communication channels, such as unsubstantiated claims like “the best” or “test winner” if the prerequisites for such statements (e.g., a reference to a valid test report) are not verifiably documented. Such claims must be truthful and supported by evidence, for example through a footnote.
Examples of Unfair Top Position Claims
Statements such as “best price,” “largest selection,” or “market leader” are frequently the subject of competition law disputes. Violations of the Price Indication Regulation or the Act against Unfair Competition of Medicines can also result in warning letters.
Legal Foundations in Germany, Switzerland, and the EU
The main rules of competition law are found in Switzerland in the Federal Act against Unfair Competition (UWG). In Germany, the central law is the Act Against Unfair Competition (UWG). Additionally, EU Directive 2005/29/EC on Unfair Commercial Practices applies, which has been supplemented by further EU directives to better address online advertising violations.
Our Services in Competition Law
Tailored advice on all aspects of competition law is part of our firm’s offering. Our services include both defense against warning letters and active enforcement of your rights.
Defense Against German Warning Letters in Switzerland
We defend Swiss companies against competition law warning letters originating in Germany. Especially if Swiss companies address customers in Germany via their website or other communication channels or supply goods there, their offerings are subject to German competition law.
Pre-Review of Advertising and Product Information
For our clients in Germany and Switzerland, we review planned advertising texts before publication. This includes brochures available online as well as product data sheets, safety data sheets, and other product information to identify potential legal risks or vulnerable statements.
Our Advisory Services in Competition Law
We represent you both in defending against unjustified claims and in actively pursuing claims against competitors who violate competition law. We are happy to advise you in these matters.
