Unfair Competition Law in Germany: An Introduction

German unfair competition law governs the means by which businesses may compete for customers. Its core is the Act against Unfair Competition (Gesetz gegen den unlauteren Wettbewerb, UWG). It protects competitors, consumers and other market participants against unfair commercial practices, and it protects the public interest in undistorted competition (Section 1 UWG).

Advertising always presents one’s own offer favourably and sets it apart from others. That is intended. Advertising becomes unfair only when it deceives, exerts undue pressure, harasses, deliberately obstructs or denigrates competitors, or breaches rules that also serve to protect market participants.

Who is protected

• Competitors – against denigration, disparagement, unfair imitation and targeted obstruction (Section 4 UWG)
• Consumers – against misleading information, aggressive practices and withheld information (Sections 4a, 5, 5a, 5b UWG)
• Other market participants – including businesses as customers, for example in misleading B2B advertising
• The public – in a functioning, undistorted market

When the UWG applies: the commercial practice

The UWG applies to any commercial practice (Section 2(1) no. 2 UWG): conduct in favour of one’s own or another business that is objectively connected with promoting sales, purchasing goods or services, or concluding and performing contracts. This includes classic adverts as well as packaging, website copy, social media posts, search engine advertising, chatbot answers and after-sales customer service.

The prohibitions at a glance

Provision	Content	Typical cases
Section 3(3) UWG and Annex	“Blacklist”: practices always prohibited towards consumers	bait advertising, unauthorised quality marks, fake reviews, “free” despite costs
Section 3a UWG	breach of statutory rules regulating market conduct	pharmaceutical advertising, price indication, e-commerce information duties
Section 4 UWG	protection of competitors	denigration, disparagement, imitation, obstruction
Section 4a UWG	aggressive commercial practices	pressure, coercion, exploiting distress
Sections 5, 5a, 5b UWG	misleading actions and omissions	false claims, hidden advertising, missing mandatory information
Section 6 UWG	comparative advertising	price and performance comparisons
Section 7 UWG	unacceptable nuisance	marketing emails and calls without consent

Who can enforce claims

There is no “right holder” in unfair competition law. Section 8(3) UWG lists exhaustively who may claim injunctive relief: competitors active on the market to a not insignificant extent, trade associations registered with the Federal Office of Justice (e.g. the Wettbewerbszentrale), qualified consumer organisations and chambers of commerce and crafts. Since May 2022, consumers may also claim damages (Section 9(2) UWG).

Consequences of infringements

• Cease and desist and removal (Section 8 UWG), usually via a warning letter and a cease-and-desist declaration with a contractual penalty
• Preliminary injunctions within days, often without a hearing (Section 12 UWG)
• Damages and information (Section 9 UWG), skimming-off of profits by associations (Section 10 UWG)
• Fines for widespread infringements of consumer interests (Section 19 UWG) and for unlawful telephone marketing (Section 20 UWG)

Injunctive and damages claims of competitors become time-barred six months after knowledge (Section 11 UWG).

Case examples

The European dimension

Much of the UWG implements EU law, especially the Unfair Commercial Practices Directive. Directly applicable regulations such as the Digital Services Act, the Health Claims Regulation and the AI Act add further rules. See EU unfair competition law and AI in advertising.