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    • Outsourcing – for companies or law firms
    • Booking as speaker
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Rechtsanwalt Marian Härtel - ITMediaLaw

Competition law in digital marketing

10. October 2024
in Competition law
Reading Time: 4 mins read
0 0
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wettbewerbsrecht im digitalen marketing dos and donts fuer startups
Key Facts
  • Digital marketing offers start-ups opportunities for advertising, but also harbors many risks under competition law.
  • Competition law in digital marketing is regulated by the UWG and other laws such as the GDPR.
  • Clear labeling of advertising is crucial to avoid legal problems.
  • Misleading advertising is prohibited; all advertising claims must be factual and verifiable.
  • Email marketing requires the consent of the recipient and clear labeling.
  • Data protection under GDPR is essential; consent to data processing must be transparent
  • Influencer marketing requires legal clarity; contracts should regulate the legal requirements.

Digital marketing offers start-ups a wide range of opportunities to advertise their products and services and reach their target groups effectively. However, it also harbors numerous competition law pitfalls that can lead to costly warnings. This article highlights the most important competition law aspects that start-ups need to consider in digital marketing and provides practical tips on how to design online marketing measures in a legally compliant manner.

Content Hide
1. Legal framework
2. Key aspects of competition law in digital marketing
3. Special challenges for start-ups
4. Practical tips for start-ups
4.1. Author: Marian Härtel

Legal framework

Competition law in digital marketing is primarily regulated by the Unfair Competition Act (UWG). Other relevant legal sources are

  • Telemedia Act (TMG)
  • Interstate Broadcasting Treaty (RStV) and Interstate Media Treaty (MStV)
  • General Data Protection Regulation (DSGVO)
  • Price Indication Ordinance (PAngV)

Key aspects of competition law in digital marketing

  1. Labeling of advertising
    One of the most common sources of error in digital marketing is the lack of labeling of advertising. According to Section 5a (6) UWG, the commercial purpose of a commercial activity must be recognizable. This applies in particular to:
    • Influencer marketing
    • Native advertising
    • Sponsored posts in social media

Do: Label advertising clearly and unambiguously, e.g. with “Advertisement” or “Advertising”.
Don’t: Hide advertising labels or use unclear terms like “powered by”.

  1. Misleading advertising
    Section 5 UWG prohibits misleading business practices. Particular caution is required in digital marketing:
    • Product descriptions and promises
    • Prices and discounts
    • Customer reviews and testimonials

Do: Make sure that all advertising claims are factually correct and verifiable.
Don’t: Don’t exaggerate product promises and avoid ambiguous wording.

  1. Comparative advertising
    Comparative advertising is permitted under certain conditions in accordance with Section 6 UWG, but is legally tricky. Please note:
    • The comparison must be objective and verifiable
    • It must not be misleading or disparaging
    • Only essential, relevant and representative properties may be compared

Do: Limit yourself to factual, verifiable comparisons.
Don’t: Avoid making sweeping claims of superiority or disparaging competitors.

  1. Email marketing
    The strict provisions of Section 7 UWG must be observed for email marketing:
    • Consent of the recipient required (double opt-in)
    • Clear labeling as advertising
    • Indication of the sender and an option to object

Do: Implement a legally compliant double opt-in procedure.
Don’t: Do not send unsolicited advertising emails (spam).

  1. Competitions and prize draws
    Competitions are a popular marketing tool, but are subject to strict legal requirements:
    • Clear and complete conditions of participation
    • No linking of participation to the purchase of goods
    • Compliance with youth protection regulations

Do: Formulate transparent and fair conditions of participation.
Don’t: Do not link participation in the competition to the purchase of products.

  1. Data protection in marketing
    The GDPR places high demands on data protection in marketing:
    • Consent to data processing for marketing purposes
    • Transparent information about data processing
    • Observance of data subject rights (e.g. right to erasure)

Do: Implement a comprehensive data protection concept for your marketing activities.
Don’t: Do not use personal data for marketing purposes without a legal basis.

  1. Influencer marketing
    Special competition law aspects must be observed in influencer marketing:
    • Clear labeling of advertising
    • Compliance with the imprint obligation
    • Observance of third-party rights (e.g. image rights)

Do: Conclude clear contracts with influencers that regulate the legal requirements.
Don’t: Don’t try to disguise paid collaborations as authentic recommendations.

Special challenges for start-ups

  1. Limited resources
    Many startups do not have dedicated legal departments or extensive budgets for legal advice.
  2. Rapid growth and agility
    The need to act and scale quickly can lead to legal risks.
  3. Innovative marketing approaches
    New, creative marketing methods can lead into uncharted legal territory.
  4. International orientation
    Many start-ups operate internationally from the outset, which requires compliance with different legal systems.

Practical tips for start-ups

  1. Build up basic legal knowledge: Invest in training on competition law basics for your marketing team.
  2. Create checklists: Develop internal checklists for the legally compliant design of marketing measures.
  3. Use templates: Create legally checked templates for frequently used marketing instruments (e.g. competition T&Cs).
  4. Implement monitoring: Regularly monitor your marketing activities for legal compliance.
  5. Use external expertise: Consult a specialized lawyer at an early stage for complex campaigns or new marketing approaches.
  6. Documentation: Carefully document the legal considerations and decisions in your marketing activities.
  7. Observe industry standards: Follow best practices and guidelines from industry associations.
  8. Establish a culture of error: Create a corporate culture in which legal concerns can be addressed openly and dealt with constructively.

Compliance with competition law requirements in digital marketing may initially appear to be an additional challenge for start-ups. However, a proactive and informed approach to competition law can not only minimize legal risks, but also contribute to the creation of a fair competitive environment that ultimately benefits all market participants.

By implementing legally compliant marketing practices, start-ups can not only avoid costly warnings, but also build trust with customers and business partners. Ethical and legally compliant marketing can therefore become an important differentiator and competitive advantage.

Given the complexity of competition law and the constantly evolving digital marketing landscape, it is advisable for start-ups to regularly seek legal expertise when planning and implementing marketing campaigns. A lawyer specializing in competition law can help to ensure that marketing strategies are legally compliant and to identify and avoid potential pitfalls at an early stage.

Marian Härtel
Author: Marian Härtel

Marian Härtel ist Rechtsanwalt und Fachanwalt für IT-Recht mit einer über 25-jährigen Erfahrung als Unternehmer und Berater in den Bereichen Games, E-Sport, Blockchain, SaaS und Künstliche Intelligenz. Seine Beratungsschwerpunkte umfassen neben dem IT-Recht insbesondere das Urheberrecht, Medienrecht sowie Wettbewerbsrecht. Er betreut schwerpunktmäßig Start-ups, Agenturen und Influencer, die er in strategischen Fragen, komplexen Vertragsangelegenheiten sowie bei Investitionsprojekten begleitet. Dabei zeichnet sich seine Beratung durch einen interdisziplinären Ansatz aus, der juristische Expertise und langjährige unternehmerische Erfahrung miteinander verbindet. Ziel seiner Tätigkeit ist stets, Mandanten praxisorientierte Lösungen anzubieten und rechtlich fundierte Unterstützung bei der Umsetzung innovativer Geschäftsmodelle zu gewährleisten.

Tags: AdvertisingAdvertisingBeratungCompetitionCompetition lawCompetitive advantageEntscheidungenE‑mailGDPRGeneral Data Protection RegulationGrowthImprint obligationInfluencerInformationLaw against Unfair CompetitionLawyerMailMarket participantsmarketingPrivacyrightSpamStartupsUwgVerträge

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  • Informationen
    • Ideal partner
    • About lawyer Marian Härtel
    • Quick and flexible access
    • Principles as a lawyer
    • Why a lawyer and business consultant?
    • Focus areas of attorney Marian Härtel
      • Focus on start-ups
      • Investment advice
      • Corporate law
      • Cryptocurrencies, Blockchain and Games
      • AI and SaaS
      • Streamers and influencers
      • Games and esports law
      • IT/IP Law
      • Law firm for GMBH,UG, GbR
      • Law firm for IT/IP and media law
    • The everyday life of an IT lawyer
    • How can I help clients?
    • Testimonials
    • Team: Saskia Härtel – WHO AM I?
    • Agile and lean law firm
    • Price overview
    • Various information
      • Terms
      • Privacy policy
      • Imprint
  • Services
    • Support and advice of agencies
    • Contract review and preparation
    • Games law consulting
    • Consulting for influencers and streamers
    • Advice in e-commerce
    • DLT and Blockchain consulting
    • Legal advice in corporate law: from incorporation to structuring
    • Legal compliance and expert opinions
    • Outsourcing – for companies or law firms
    • Booking as speaker
  • News
    • Gloss / Opinion
    • Law on the Internet
    • Online retail
    • Law and computer games
    • Law and Esport
    • Blockchain and web law
    • Data protection Law
    • Copyright
    • Labour law
    • Competition law
    • Corporate
    • EU law
    • Law on the protection of minors
    • Tax
    • Other
    • Internally
  • Podcast
    • ITMediaLaw Podcast
  • Knowledge base
  • Videos
    • Information videos – about Marian Härtel
    • Videos – about me (Couch)
    • Blogpost – individual videos
    • Videos on services
    • Shorts
    • Podcast format
    • Third-party videos
    • Other videos
  • Contact
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