Stop abuse of warnings quickly

The German motor vehicle trade association is calling for the swift passage of the law against the misuse of warning letters. Every day of delay is a burden on the economy.

This article is part of the special feature " No fear of cease-and-desist letters!"

The German Association of Motor Trades and Repairs (ZDK) is calling for the swift passage of the law to strengthen fair competition . Several business associations, including the ZDK, have jointly addressed a letter to the chairpersons of the Legal Affairs Committee of the German Bundestag , highlighting the dangers to the economy. They argue that every day of delay will lead to further abusive cease-and-desist letters, causing millions of euros in damages to businesses.

Millions in economic damage

"Member companies of the German automotive trade association are also significantly affected," says ZDK legal expert Ulrich Dilchert . Alleged competitors are exploiting even minor violations of information obligations to demand fines. The aim of the draft law must be to raise the bar for the authority of trade associations and competitors to issue cease -and-desist letters. To truly achieve this goal, some points in the draft still need improvement, Dilchert adds.

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Legal certainty for companies required

Trade associations should be required to publish lists of their members so that anyone receiving a cease-and-desist letter can immediately determine whether the issuing association actually has members from the industry with whom it competes. Only then can a cease-and-desist letter be formally justified . The participating trade associations also demand that data protection violations not be subject to cease-and-desist letters based on competition law. The legal uncertainty surrounding the question—ultimately to be clarified by the European Court of Justice —of whether the General Data Protection Regulation (GDPR) itself prohibits cease-and-desist letters based on competition law should not be imposed on businesses.

Source: ZDK