They catch some people cold and without warning: cease and desist letters. An annoying and sometimes expensive matter. Malicious intent isn't always behind a competition violation. Startups often fall into the cease and desist letter trap out of ignorance or negligence. But what do you do when you receive a cease and desist letter for unfair advertising?
In the event of a dispute, litigation is often too long and expensive, especially for young companies. An alternative to court proceedings is the Conciliation Board for Competition Disputes. This independent body, run by businesses for businesses, seeks an out-of-court settlement with both parties in cease-and-desist notice cases. In many cases, a cost-effective, amicable solution can be found.
Svenja Hartmann is responsible for the arbitration board for competition disputes at the Chamber of Industry and Commerce for Munich and Upper Bavaria. She explains where startups can turn in the event of a warning letter and how they can receive assistance there.
Who can contact the conciliation board?
Any business owner in the Munich and Upper Bavaria area who has received a warning letter or who wishes to take legal action against a competitor's antitrust violations can apply to the conciliation board. Consumers are not eligible to file applications.
In which cases can I contact the conciliation board?
The conciliation board is responsible for claims based on the Act against Unfair Competition (UWG) or the Injunctions Act (UKlaG).
Typical case studies are:
• Misleading, harassing or aggressive advertising in print, on the Internet or by email and telephone
• False information in the online imprint
• Violations of the cancellation policy or other information obligations (price information, textile labelling, health information)
• Special sales, discount campaigns
How can the conciliation board help me if my company has received a warning letter?
If the conciliation board determines that a competition violation has occurred, it proposes a settlement to the parties that is equivalent to a court judgment. If no agreement is reached, it declares the proceedings unsuccessful. The applicant can then pursue their claim in court.
From entrepreneurs for entrepreneurs
How does such a settlement procedure work and what do I have to do to get help?
At the conciliation hearing, the applicant and respondent sit at a round table with the chair of the conciliation board (a lawyer) and two volunteer assessors (businesspeople) from the commercial sector to seek an amicable solution. The case is discussed openly, and the assessors comment on the matter from their commercial and economic perspectives and offer suggestions for a proposed settlement.
The conciliation board is an institution run by entrepreneurs for entrepreneurs. It is based on the principle of self-regulation of the economy. Combating unfair competition is primarily a task for the economy itself. Honest merchants monitor compliance with the rules and ensure that everyone else follows suit.
The conciliation board will only act upon request. Requests must be submitted in writing to the conciliation board's office.
How much does such a procedure cost?
The procedure is free of charge.
If the competition violation was actually committed, the person receiving the warning must bear the costs of the person issuing the warning. If you were summoned and fail to appear without excuse, you can be fined up to €1,000.00.
How do I contact the conciliation board?
The Conciliation Board will only act upon request. Applications from businesses in Munich and Upper Bavaria must be submitted in writing to the office of the Conciliation Board for Competition Disputes at the Chamber of Industry and Commerce for Munich and Upper Bavaria:
Conciliation Board for Competition Disputes at the Chamber of Industry and Commerce for Munich and Upper Bavaria
Balanstraße 55 – 59
81541 Munich
Questions about the application can be directed to: geschaeftsstelle@einigungsstelle.org
What does the Chamber of Commerce and Industry have to do with the conciliation board?
The Chamber of Industry and Commerce manages the conciliation board's office. This means that it organizes the appointments, sends the summonses, and hosts the conciliation talks. It has no influence on the content of the conciliation proceedings.
Where can I find more information about the conciliation board?
Online at www.einigungsstelle.org
