Consumer Protection
Protecting competition is the best way to protect consumer interests. Competition motivates companies to work hard to win over customers. As a competition authority, the Bundeskartellamt makes sure that competition works to the benefit of consumers.
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Frequently asked questions ...
What exactly are the Bundeskartellamt’s competences in the area of consumer protection?
The Bundeskartellamt can launch a sector inquiry if there are reasonable grounds to suspect that consumer protection laws, such as the Act Against Unfair Competition (Gesetz gegen den unlauteren Wettbewerb – UWG), have been seriously violated. Such an inquiry can be launched to protect consumers if the authority suspects that substantial, permanent or repeated violations of consumer protection laws will harm a large number of consumers. The Bundeskartellamt has already conducted sector inquiries in the field of competition law for several years. The Bundeskartellamt can also act as “amicus curiae”, a “friend of the court”, in civil consumer protection actions.
When conducting sector inquiries, does the Bundeskartellamt take action against individual companies?
No. Sector inquiries are not proceedings against specific companies but take a look at a sector as a whole. The Bundeskartellamt’s sector inquiries into consumer protection issues focus on developments which affect the everyday digital lives of consumers. With these new powers the Bundeskartellamt can identify problems and provide recommendations for action.
When consumer rights are violated, what exactly can the Bundeskartellamt do?
When it comes to violations of competition law, the Bundeskartellamt can end them or impose fines. This is not the case when consumer rights are violated. In Germany consumer protection is mainly enforced in civil actions. The Bundeskartellamt can conduct sector inquiries focusing on consumer rights to identify infringements or problems and raise awareness. It does so by providing tips and advice to consumers and recommending political action including possible legislative changes.
How are consumer rights actually enforced under civil law?
If a company does not comply with the law, the consumers affected can enforce their rights in person, if necessary in a court of law. The Bundeskartellamt cannot provide legal advice in this respect. Consumers can turn to qualified institutions, associations and chambers of industry and commerce for help, which can issue warnings to companies if they are in violation of the law and, if necessary, in a second stage bring the matter before the courts. Organisations which have taken such action are, for example, the Federation of German Consumer Organisations (Verbraucherzentrale Bundesverband, www.vzbv.de), the consumer organisations of the Länder and the Centre for Protection against Unfair Competition (Wettbewerbszentrale www.wettbewerbszentrale.de).
In consumer protection proceedings under civil law, the Bundeskartellamt can act as “amicus curiae”, a “friend of the court”, and provide an objective statement if the matter is of public interest.
How is protecting competition linked to protecting consumers?
Competition protection and consumer protection generally move along the same lines. Consumers benefit from open and competitive markets and, conversely, it is in the interest of law-abiding businesses to comply with consumer protection laws. In protecting competition (especially by carrying out its tasks in the area of cartel prosecution, abuse control and merger control), the Bundeskartellamt indirectly plays an active part in protecting consumers.