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Emergency

Received a competition-law warning letter: how to respond correctly

A competition-law warning letter, for example over faulty mandatory disclosures, advertising or the site notice, often puts you under time pressure with a short deadline and an attached cease-and-desist declaration. Important: do not sign it without checking. The pre-drafted declaration is often too broadly worded and can trigger expensive contractual penalties.

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A competition-law warning can be justified (§ 8 UWG), but the attached cease-and-desist declaration is often worded too broadly. If you sign it without checking, high contractual penalties threaten with every future breach.
You can have the warning reviewed and, if the breach applies, submit a modified (narrowed) cease-and-desist declaration. Unjustified or abusive warnings can be rejected.

What you should do now

  1. 1

    1. Note the deadline, do not ignore it

    The deadlines are short. Ignoring is dangerous (a preliminary injunction threatens), but so is signing too hastily.

  2. 2

    2. Check whether it is justified

    Is the alleged breach accurate and is the party issuing the warning entitled to do so? Have this checked professionally.

  3. 3

    3. Modify the declaration

    Do not submit the pre-drafted declaration, but an adjusted (modified) cease-and-desist declaration that does not reach too far.

  4. 4

    4. Check costs and abuse

    Check the demanded costs and whether the warning is abusive (mass warnings). Get legal help.

How to spot the scam

  • You sign the attached cease-and-desist declaration without checking it.
  • You ignore the warning and risk a preliminary injunction.
  • The demanded costs or contractual penalties are disproportionately high.

Frequently asked questions

Do I have to sign the cease-and-desist declaration?

Not the attached, pre-drafted one. It is often deliberately worded too broadly. If the breach is justified, you can submit a modified, narrowed cease-and-desist declaration that removes the risk of repetition without promising excessive contractual penalties.

What happens if I do not respond?

If you do not respond at all, a preliminary injunction or lawsuit with further costs threatens. Ignoring is therefore risky. But signing too hastily is just as risky. The right path is to have the warning checked within the deadline.

Are all warnings justified?

No. Some are unjustified or abusive (for example mass warnings intended mainly to generate fees). Such warnings can be rejected. Because of the short deadlines and the significance, legal help is advisable.

Take action now

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.