Unlauteren

Unlauteren, in the context of competition law, refers to acts or conduct in business that violate the principle of honest competition. The term is most often used in German and European law to describe unfair competition practices that distort market conditions or deceive consumers. It is typically contrasted with fair or legitimate competitive strategies such as lawful price competition or genuine product differentiation.

Scope and examples

Unlauteren includes a range of deceptive or misleading practices. Examples are false or misleading advertising about product origin, features, quality, or price; misrepresentation that a product or service comes from a particular company or region when it does not; and bait advertising that lures customers with an offer not intended to be fulfilled. It also covers actions that imitate distinctive signs, packaging, or branding to create confusion with a competitor’s products, disparaging statements about a rival, and any marketing that unfairly exploits another company's reputation. Comparative advertising must be accurate and not misleading, and it cannot take unfair advantage of a competitor’s business or confuse consumers.

Legal framework

In Germany, unfair competition is primarily governed by the Gesetz gegen den unlauteren Wettbewerb (UWG). The UWG sets standards for what constitutes unfair conduct and provides remedies for harmed competitors and consumers. At the European level, directives on unfair commercial practices guide national implementations, aiming to ensure transparent and trustworthy markets across member states. Enforcement is typically civil, with courts able to order cease-and-desist measures, damages, or other relief, and, in some cases, involvement by competition authorities.

Notes

Unlauteren is distinct from legitimate competitive behavior; it does not bar aggressive but fair competition. Legitimate strategies include genuine price competition, honest advertising, and truthful product comparisons.