Misleading Advertising Examples

Legal Pitfalls and Consequences

Misleading advertising is a common reason for warnings and competition law lawsuits. Consumers and competitors can take legal action against companies that use false, ambiguous, or deceptive claims in their advertising.

Why Is Misleading Advertising a Problem?

5 UWG, an advertising claim is misleading if it:

Contains false or unclear information about products or services
Conceals essential details that would influence a purchase decision
Makes unrealistic price or performance promises

Particularly problematic are misleading claims regarding prices, quality, environmental friendliness, and product availability.

Steps to Ensure Legally Compliant Advertising

1. Clarity and Transparency: Avoid exaggerated or misleading advertising claims.
2. Evidence for Claims: Advertised product features must be verifiable.
3. Avoid Bait Advertising: Promotional prices must be realistic and available.

No False Environmental Claims: Advertising with terms like “climate neutral” or “sustainable” must be truthful and transparent.

Legal Regulations for Misleading Advertising

Companies must ensure their advertising complies with legal requirements. Key regulations include:

§ 5 UWG – Prohibition of Misleading Advertising
§ 3 UWG – Unfair Commercial Practices
Price Indication Regulation (PAngV) – Guidelines for Price Advertising

Violations of these regulations can lead to warnings, fines, and compensation claims.

Case Studies: Warnings for Misleading Advertising

1. Case: Advertising with Alleged Product Tests

The Regional Court of Düsseldorf prohibited a company from advertising with alleged product tests on the website “warentest-deutschland.de.” The site created the impression of independent and reliable product reviews, although this was not the case. The court ruled this practice as misleading, as it deceived consumers.

LG Düsseldorf: misleading advertising with alleged product tests

2. Case: Misleading Claims About Packaging Materials

The Regional Court of Stuttgart ruled that the claim “Ocean Plastic” as a packaging material is misleading if the material is not entirely made from ocean plastic. Companies must provide clear and accurate information about their packaging composition to avoid misleading consumers.

LG Stuttgart: misleading advertising with “ocean plastic”

3. Case: Misleading Discount Advertising in Retail

The European Court of Justice (ECJ) ruled that retailers may only advertise price reductions based on the lowest price within the last 30 days. In this case, Aldi Süd falsely advertised discounts on fruit while concealing previously lower prices. The ruling strengthens consumer rights and sets clear standards for price advertising.

EuGH: misleading advertising with discount promotions

4. Case: Misleading Advertising for Heat Pumps

The Competition Authority issued warnings to two heat pump manufacturers that promised a €1,000 cashback offer but failed to disclose key details about grant applications. This practice could have led to double financial benefits for customers and was deemed misleading. The manufacturers signed a cease-and-desist declaration and updated their advertising with the necessary disclosures.

Wettbewerbszentrale: misleading advertising of heat pumps

These cases highlight the importance of transparent and truthful communication in advertising to avoid legal consequences.

How to Avoid Legal Warnings

Review advertising claims carefully before publication.
Document all claims and supporting evidence.
Have ambiguous wording reviewed by legal experts.

To the point: Avoid Misleading Advertising – Advertise Legally

A clear and honest advertising strategy protects your company from legal consequences. Our law firm supports you in ensuring legally compliant advertising to avoid warnings and lawsuits.