Do you run an online store with WooCommerce? And want to avoid warnings? In 2018, over 20 percent of stores received one - according to a survey by the Händlerbund. We list the most common reasons for a WooCommerce warning or for your online store. So you can react in good time.
The cost of a warning letter is usually in the four-figure range; warning letters from associations such as the IDO Association or the Association for Social Competition are "cheaper" at less than 500 euros. This makes it all the more important for retailers to know what warning letters are all about and what the most important reasons for warning letters are.
The experience of the Händlerbund shows: Most warnings are justified and can therefore be avoided. As a Raidboxes customer, you receive an exclusive discount on the service provider's packages for legal certainty.
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Warning letters in Germany
In legal terms, a warning is a request to refrain from doing something that affects the other party. This could be the branches of a neighbor's apple tree that protrude over the property boundary, but also false press reports about a person.
In e-commerce, this mainly concerns warnings under competition law. This means that a retailer issues a warning to another retailer because the latter is in breach of competition law regulations. This infringement gives the retailer a competitive advantage over those who comply with the law. It therefore impairs competition.
An example: A retailer refrains from licensing its packaging with one of the dual systems. This saves him costs that he would actually include in the product prices. On average, he can offer his products at a lower price than his competitors.
Put simply, the basic prerequisite for issuing a warning letter is that you suffer a disadvantage as a result of someone else's infringement of competition law. This in turn means that the person committing the infringement must be in a direct competitive relationship with the retailer issuing the warning.
Warning by competitors
A competitive relationship exists, for example, if the product range is similar. In most cases, the retailer does not issue the warning itself, but commissions a lawyer to represent its interests. The costs can then be recovered from the person receiving the warning.
A warning letter usually also includes a pre-formulated cease-and-desist declaration. This is basically nothing more than a contract in which the competitor promises not to repeat the mistake. In the event of a breach of contract, a contractual penalty is due. To prevent this costly consequence from occurring in the first place, we have listed them for you: The five most common reasons for a competition law warning.
Reason 1: The outdated withdrawal policy
The right of withdrawal has existed in its current form since 2014, but outdated withdrawal instructions are still being used in online stores. They can be recognized by the fact that the store operator informs its customers that they can also declare their withdrawal by returning the goods without comment. But this is wrong! Since 2014, withdrawal must be declared to the company.
This means that the customer must formulate their intention to withdraw. Anyone who still has this wording in their legal texts should therefore act quickly. By the way: Despite legally correct withdrawal instructions, it can happen that a customer returns the goods without comment. This can lead to uncertainty for the retailer.
Reason 2: Advertising with insured shipping
Advertising with insured shipping is just as often cautioned. This phrase falls under "advertising as a matter of course". At least if the retailer's business is aimed at consumers. According to Section 475 (2) of the German Civil Code (BGB), the entrepreneur bears the transportation risk when selling goods by mail order. This means that the retailer is liable if the goods are lost or damaged on the way to the customer.
Whether the shipment is insured or not is ultimately irrelevant for the customer. However, by stating "insured shipping", the retailer suggests the opposite. Namely, that the customer is particularly protected compared to other retailers who do not make this statement.
Note
Incidentally, this does not apply to B2B or C2C business. Here, the transportation risk is transferred to the buyer as soon as the goods have been handed over to the service provider. For the buyer, therefore, it does matter how the goods are shipped.
Reason 3: Blanket advertising with a guarantee
"2-year guarantee!" - statements like these entice customers, but what does the warranty actually cover? On a specific part of the product? On the color? And where do I turn to as a customer if a warranty claim arises? If the advertising of a guarantee conceals these circumstances, it is illegal blanket advertising with a guarantee.
A correct statement of such a guarantee must, for example, include the name and address of the guarantor and explain what to do in the event of a guarantee claim. With a blanket statement, on the other hand, the customer does not know what to do if something goes wrong. Perhaps the warranty only covers a small part of the damage? If the customer had known this before the purchase, then the "2-year guarantee" statement would certainly not have been so tempting.
Reason 4: The missing basic price information
The Price Indication Ordinance (PDF) requires the indication of a basic price. This is to ensure that consumers can still compare the prices of goods that are sold in different quantities. The basic price must always be stated if a product is offered by length, weight, volume or area. However, the law does not stipulate a base price per unit.
If a product is offered by length, weight, volume or area, the basic price must be indicated accordingly per kilogram, liter, meter and so on. For goods whose nominal weight or volume is usually less than 250 grams or milliliters, the basic price may also be stated per hundred grams or milliliters.
Note
The basic price must always be stated if the total price is advertised. It is therefore not sufficient to include it in the product description.
For the Ebay marketplace, it is therefore advisable to include the basic price in the title of the item. This is because Ebay allows sellers to enter a base price in principle. This is usually displayed directly below the total price. However, Ebay also creates catalog views, such as "Customers also bought". In some cases, the total price may be listed without the base price.
Reason 5: Lack of registration with LUCID
The new Packaging Act has been in force since 01.01.2019. This has seamlessly replaced the old Packaging Ordinance and imposes new obligations on retailers. The basic idea of the law is that the party who sends the packaging waste to the consumer should also be responsible for its disposal. Packaging must therefore be licensed with one of the dual systems.
This process is not new: the obligation to obtain a license has existed since the mid-1990s. It was regulated by the Packaging Ordinance until the end of 2018. The problem with this was that it was virtually impossible to check whether or not someone was complying with this obligation. As a result, there may have been many companies that did not comply with this obligation.
This has changed fundamentally since 01.01.2019: The new Packaging Act also established the database of the so-called "Central Agency". Everyone who places packaging subject to system participation on the market must register on this database in addition to licensing with the dual system. The database is called LUCID and is publicly accessible. This means that it is now not only easier for the authorities to identify infringements. Your competitors can also check whether they are complying with the law.
Help with warnings
For some European countries and languages, there are services such as Händlerbund. This provides continuously updated legal texts, which make your online store even more warning-proof. The interface to WooCommerce is particularly practical. This minimizes your administrative effort considerably.
The Händlerbund can also help you with legal questions and warnings. Are you a Raidboxes customer? Then you will receive an exclusive discount of 3 months on the Händlerbund packages in the first year. Use the following link: https://www.haendlerbund.de/de/raidboxes.
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