Case law

  • Case Details
    • National ID: 4 Ob 95/09p
    • Member State: Austria
    • Common Name:Friedrich M.
    • Decision type: Supreme court decision
    • Decision date: 14/07/2009
    • Court: Supreme Court, Vienna
    • Subject:
    • Plaintiff: N/A
    • Defendant: N/A
    • Keywords: harmonisation, prizes
  • Directive Articles
    Unfair Commercial Practices Directive, Annex I, 31.
  • Headnote
    It is permitted for an official consumer protection authority of one member state to prohibit unfair practices of companies based in other member states.
  • Facts
    Five companies based in Germany and France made misleading promotions, making consumers believe that they had won a prize or would win a prize. The courts held that the statement "You have finally made it. It is guaranteed that you are permitted for the prize draw of EUR 12.500!" could be understood to mean that the consumer already won a prize. It was indicated in small, hidden letters that the consumer did in fact not yet win a prize.

    Claims were brought before the Austrian Federal Competition Authority ("Bundeswettbewerbsbehörde" or "BWB"), regarding the commercial practices of the German and French companies.

    In this decision the Austrian Act on Cooperation between Consumer Protection Authorities ("Verbraucherbehörden- Kooperationsgesetz = VBKG") was applied for the first time. The BWB issued a prohibition of misleading advertising to protect foreign customers.
  • Legal issue
    The Austrian Supreme Court held that the provisions prohibiting misleading advertising are fully harmonized through the UCP Directive, in particular article 6. Thus, the court held that it could apply German (§ 5 German Unfair Competition Act) and French (Art L 120 f Code de la Consommation) competition law, which are basically the same as they are based on the UCP Directive.

    The Supreme Court then held that in the current case it was obvious that the companies' practices were misleading, as they even amounted to the black list practice of Annex I, item 31 UCP Directive.

    However, they did eventually not qualify as black list practices exactly, as the information was only misleading in so far as there was indeed a prize promotion (but the consumer had not already won, as suggested in the promotion) and as it was not clear that the consumer had to mandatorily to pay money or incur other costs (although the companies clearly intended to entice consumers to purchase their products).

    The Supreme Court confirmed that based on the harmonization of consumer protection/unfair commercial practices laws in Europe, is it permitted for the official authority of one member state to prohibit unfair practices of companies based in other member states, in particular, as the current practice was clearly misleading in view of the provisions of the UCP Directive.

     
  • Decision

    Is it permitted for an official consumer protection authority of one member state to prohibit unfair commercial practices of companies based in other member states? 

    URL: http://www.ris.bka.gv.at/Dokument.wxe?Abfrage=Justiz&Dokumentnummer=JJT_20090714_OGH0002_0040OB00095_09P0000_000

    Full text: Full text

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  • Result
    The consumer authority's claim for injunction was granted.