Are there differences in competition law between online and offline businesses?
April 26, 2024 | 40,00 EUR | answered by Georg Sauer
Dear lawyer,
My name is Andrea Götzinger and I run a small family business that operates both online and offline. In recent months, I have been researching competition law extensively and have come across the question of whether there are differences in competition law between online and offline businesses.
Currently, I am selling similar products in both my brick-and-mortar store and my online shop. However, I have a feeling that the legal framework for selling online could be different from that of selling in a physical store. Therefore, I am concerned that I may be unknowingly violating competition law.
My question to you as an expert in competition law is: Are there indeed differences in competition law between online and offline businesses? If so, what specific regulations do I need to consider in my online shop to avoid legal issues? Are there perhaps regulations that apply only to physical retail?
I would greatly appreciate your help and expertise in this matter, as I want to continue operating my business successfully and legally. Thank you in advance for your support.
Sincerely,
Andrea Götzinger
Dear Mrs. Götzinger,
Thank you for your inquiry regarding competition law in relation to online and offline businesses. It is understandable that you are concerned about whether there are differences in the legal framework and how you can run your business in a legally secure manner.
It is important to know that competition law applies to both brick-and-mortar and online businesses. However, there are some specific regulations that are particularly relevant in online commerce and that you should be aware of in order to avoid legal issues.
An important point in online commerce is the so-called imprint. According to §5 of the Telemedia Act (TMG), as an online retailer, you are required to provide an imprint on your website containing information about the identity of your company, such as name, address, and contact details. This serves transparency and consumer protection in online commerce.
Another important aspect is the information obligations under the Distance Selling Act. If you sell goods through your online shop, you must inform your customers about certain information before concluding the purchase contract, such as the essential characteristics of the goods, the total price including all taxes and shipping costs, the payment and delivery conditions, as well as their right of withdrawal.
Furthermore, you also need to pay attention to data protection in online commerce. As an operator of an online shop, you are required to comply with data protection regulations and inform your customers about the collection, processing, and use of their data.
Similar legal requirements apply in brick-and-mortar commerce, but there are usually fewer specific regulations to consider. For example, you also need to display an imprint in the physical store, however, the information obligations in brick-and-mortar commerce are generally less extensive.
It is advisable to familiarize yourself in detail with the respective legal requirements for online and offline commerce and, if necessary, seek legal advice to ensure that your business complies with the legal regulations.
I hope that I could assist you with this information. If you have any further questions or require more detailed advice, I am at your disposal.
Best regards,
Georg Sauer
Attorney at Law
