In times of globalized supply chains, consumers increasingly value transparency and honesty. A clear indication of origin plays a central role in this. However, a recent case shows how quickly an incorrect or misleading indication of origin can lead to legal consequences. An Amazon retailer was warned due to incorrect information about the country of production of its goods — with severe financial consequences.
An online retailer offered a product on Amazon that, according to the description, was manufactured in Germany. But in fact, the product came from China. This discrepancy was not hidden from a competitor. He hired a law firm that warned the Amazon seller for misleading indications of origin. The claim: Omission, information and reimbursement of costs for legal work. The total amount amounted to several thousand euros.
The statement “Made in Germany” enjoys a high level of trust worldwide and suggests quality, safety and sustainability. An incorrect declaration can deceive consumers and is therefore a clear infringement of competition. According to §5 UWG (Act against Unfair Competition), any commercial action that is likely to mislead about essential characteristics of the goods, in particular their origin, is prohibited.
According to Section 5 (1) No. 1 UWG, a commercial act is misleading if it contains false information about the geographical origin of a good. Violations of this can damage competitors and consumers alike. In this context, warnings serve as a means of preventing unfair competition.
In the specific case, the warned dealer not only had to file a declaration of injunctive relief, but also bear the attorney's fees. In addition, there is a risk of a four-to-five-digit contract penalty in the event of a new infringement. In addition, the product listing on Amazon was temporarily blocked — a damage to the image that has a direct impact on sales and customer trust.
The case shows how sensitive the issue of indication of origin is in online retail. An incorrect declaration can quickly become expensive and permanently damage customer trust. Amazon retailers and other online sellers are therefore well advised to provide their information with care and accuracy. If you want to be on the safe side, you invest in transparency and legal protection — that pays off in the long term.
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