Violation of Competition Law Due to Lack of Registration in the Crafts Register
Advertising for regulated skilled trade services is only permissible if the advertising company is registered in the crafts register. If no registration exists, such advertising violates competition law and the Crafts Code. This was clarified by the Stuttgart Higher Regional Court (OLG) in a ruling dated May 6, 2024 (Case No. 2 U 70/23).
For consumers, the registration of a business in the crafts register serves as an important indicator. Registration demonstrates that the provider of skilled trade services possesses the necessary qualifications. Thus, advertising for skilled trade services without such registration can mislead consumers and constitute a violation of competition law, according to the commercial law firm MTR Legal Rechtsanwälte, which advises on intellectual property and competition law.
Skilled Trade Services Without Registration in the Crafts Register
The plaintiff in the case before the Stuttgart Higher Regional Court was a trade association. The plaintiff argued that an advertisement by a facility management company violated the German Act Against Unfair Competition (UWG) in conjunction with the Crafts Code (HwO). The defendant had advertised its provision of key activities from the field of plumbing and heating installation. The advertisement included terms such as “emergency plumbing service,” “emergency sanitary service,” “emergency pipe repair service,” “emergency heating repair service,” and “water damage restoration.” However, the defendant was not registered in the crafts register for these services.
The Ulm Regional Court ruled in favor of the plaintiff in the first instance. While the defendant was registered with the Chamber of Crafts for other trades, it was not registered for plumbing and heating installation. As a result, advertising using the specified terms violated Section 3 (1) in conjunction with Section 3a UWG and Sections 1 and 7 HwO. The Regional Court further stated that the fact that the defendant advertised only an emergency service or referred customers to registered skilled trades upon request did not negate the claim for injunctive relief. The advertising was misleading because it gave the impression that the defendant performed the services itself.
Violation of Market Conduct Rules
The Stuttgart Higher Regional Court upheld the Regional Court’s view. Sections 1 and 7 of the Crafts Code were deemed market conduct rules within the meaning of Section 3a UWG. By advertising and performing skilled trade activities without being registered in the crafts register, the defendant violated Section 1 of the Crafts Code. The defendant had performed activities essential to the plumbing and heating installation trade. The court emphasized that even a single skilled trade activity requires registration.
The defendant admitted to performing tasks that fall under the Master Craftsman’s Examination Regulation for plumbing and heating installation, such as identifying and troubleshooting faults, taking measures to resolve those faults, and evaluating and documenting the results. These activities are central to the plumbing and heating installation trade, the Stuttgart Higher Regional Court clarified. It further ruled that the emergency nature of the services was irrelevant. This was particularly true since the defendant, according to its advertising, not only identified faults but also carried out rapid repairs to heating systems. Under these circumstances, the court found that the defendant could not claim exemption as performing minor trade activities. The Ulm Regional Court’s decision requiring the defendant to cease its advertising was therefore correct.
Emergency Services Are Not an Exception
The Stuttgart Higher Regional Court’s ruling demonstrates that emergency services are generally not exempt from the registration requirement in the crafts register. Even minor skilled trade activities, such as troubleshooting, may necessitate registration. Skilled trade businesses should review their service offerings to ensure compliance with registration requirements.
Advertising often walks a fine line and can lead to consumer misrepresentation. Violations of competition law can have significant consequences, such as injunctions or damages claims.
MTR Legal Rechtsanwälte advises on intellectual property and competition law and assists with the enforcement or defense of claims.
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