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Ask a lawyer on the topic of Competition law

Can I, as a company, participate in an advertising campaign that violates competition rules, even if I am not the initiator?

Dear Lawyer,

My name is Clara Mühlberg and I am the owner of a small business specializing in the production and distribution of organic food. Lately, I have noticed various advertising campaigns on social media and other platforms that portray the products of my direct competitors in a negative light and make false claims about their quality. This advertising clearly violates competition rules and I am concerned whether I can participate in such a campaign as a company if I am not the initiator.

So far, I have refrained from participating in such negative advertising campaigns and have only promoted my products in a positive manner. However, I wonder if in the future I might be forced to defend myself against such attacks and if it could even be advantageous to participate in such actions to promote my own products.

My concern is that by participating in an illegal advertising campaign, my company could run into legal difficulties and our reputation in the industry could be significantly damaged. At the same time, I also want to ensure that I effectively market my products and can compete in the market.

Therefore, my question to you is: Can I as a company participate in an advertising campaign that violates competition rules if I am not the initiator? What legal consequences could such participation have for my company and what alternative options are available to me to successfully promote my products?

Thank you in advance for your assessment and support.

Sincerely,
Clara Mühlberg

Georg Sauer

Dear Mrs. Mühlberg,

Thank you for your inquiry regarding participation in advertising campaigns that violate competition rules. As a lawyer specializing in competition law, I can understand your concerns and will be happy to provide you with a detailed response.

First and foremost, it is important to note that advertising campaigns that portray products of competitors in a negative light and make false claims about their quality generally violate competition law. In particular, the Unfair Competition Act (UWG) prohibits misleading and comparative advertising that could distort competition. As a company, you should therefore refrain from participating in such advertising campaigns to avoid legal consequences.

If your company participates in an illegal advertising campaign, even if you are not the initiator, you could find yourself in legal trouble. Potential consequences could include warnings, injunctions, or even claims for damages from the affected competitors. Furthermore, your reputation in the industry could be significantly damaged, which could have long-term effects on your company.

It is therefore advisable to find alternative ways to successfully promote your products without violating competition law. One option could be to promote your products in a positive manner and highlight their quality and uniqueness without negatively portraying competitors' products. Additionally, you could communicate transparently and honestly with your customers and address their needs and desires.

Overall, it is important for your company to adhere to applicable laws and regulations in order to succeed in the market in the long run. If you have any further questions or need legal advice, I am at your disposal.

Sincerely,
Georg Sauer
Lawyer specializing in competition law

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Georg Sauer