Can I make special offers to outshine my competitors?
May 24, 2024 | 30,00 EUR | answered by Greta Kleine
Dear Competition Law Attorney,
My name is Fred Büchner and I run a small retail business. Lately, I have noticed that my competitors are increasingly advertising with special offers to attract customers. Now I am wondering if I am allowed to also offer special deals to outperform my competitors and increase my sales.
The current situation is that my competitors are competing for customers with discounts and promotions, negatively affecting my sales. I am worried that in the long run I might not be competitive anymore if I do not offer similar deals. However, I am unsure if such measures are legally permissible and if I could be in violation of competition law.
Therefore, my question to you as an expert: Am I allowed to offer special deals to outperform my competitors? Are there legal regulations that I need to consider to avoid violating competition law? What options do I have to compete with my competitors and increase my sales without having to worry about legal consequences?
I thank you in advance for your support and advice on this matter.
Sincerely,
Fred Büchner
Dear Mr. Büchner,
Thank you for your inquiry regarding special offers in retail and their legal permissibility under competition law. As a lawyer specializing in competition law, I am happy to offer my knowledge and experience to answer your questions.
In Germany, it is generally allowed to offer special deals to attract customers and increase sales. However, there are certain legal provisions and rules that you must follow to avoid violating competition law.
First and foremost, you should ensure that your special offers are not misleading. This means that you must not artificially increase the prices of your products beforehand in order to then offer them at a discount as part of a special offer. Additionally, you must transparently and clearly communicate which products are being offered at what conditions.
Furthermore, you should ensure that your special offers are not aimed at deliberately harming or pushing your competitors out of the market. This could be seen as an unfair hindrance of competition and lead to legal consequences.
To stand out against your competitors and increase your sales, you should focus on your own strengths and unique selling points. Consider what makes your company unique and how you can differentiate yourself positively from your competitors. This can be done through special products, excellent customer service, or targeted marketing.
In any case, I recommend seeking legal advice before introducing special offers to ensure that you comply with all legal requirements. I am also available to discuss your specific situation and work on individual solutions.
I hope that this information has been helpful to you. If you have any further questions, please do not hesitate to contact me.
Best regards,
Greta Kleine
Lawyer specializing in competition law
