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If you’re thinking about doing business in Germany, then you’re definitely thinking big. Germans love buying British goods and they have great spending power. There’s no doubt that investing in growth in Germany is a smart decision. However, there is something that any business owner should be aware of when it comes to doing business in Germany: Abmahnungs.
What is an Abmahnung?
An Abmahnung is basically a formal warning letter meant to stop a particular behaviour. In the retail world, these get sent to businesses accused of unfair business practices. This could be for something done in a brick-and-mortar shop, but also for online businesses.
What is the reason for getting an Abmahnung?
Abmahnungs are sent out to avoid going to trial. By signing the Abmahnung you agree to stop a particular behaviour and you will probably have to pay a monetary “fine”. By agreeing to the terms of the Abmahnung, you agree to pay this fine again if the terms are breached in the future.
What’s inside an Abmahnung?
The warning must contain:
- the accused statutory violation
- a legal assessment of the violation
- a summons to omit the criticised behaviour and to sign the undertaking combined with a promise to pay a contractual penalty in case of repetition of the breach
- a (usually short) deadline threatening judicial enforcement of the claim if the deadline is not met
Normally, the accuser will also demand to be paid for the lawyer fees incurred for creating the Abmahnung.
Shutterstock/Shine Nucha
Who may issue an Abmahnung?
The UWG (§ 8 Abs. 3) regulates who may issue an Abmahnung. The main issuers are competitors. However, chambers of industry and commerce as well as some other qualified institutions and legal associations (that aim to promote commercial or independent professional interests) may also issue an Abmahnung.
A competitor is another trader or company that targets the same market regarding the objective, geographical, and timely scope. Basically, anyone offering products from the same category is a competitor.
Read more
We’ve put together a great whitepaper going into more detail about Abmahnungs.
Read about why Abmahnungs are given out, the costs and consequences of receiving an Abmahnung, and what actions can be taken if you receive one. Download it now by clicking below:
