Electrical appliances without EAR registration – permissible for trade?

Time and again, online retailers distribute electrical goods imported from Asia under their own brand name without registering the brand and type of devices distributed with the Foundation for the Electrical Equipment Register (EAR). The Regional Court (LG) Stuttgart once again had to decide on the permissibility for trade of the unregistered goods.

An online retailer warned a competitor regarding the distribution of electrical appliances in its online shop and on eBay, as the brand of the goods distributed was not registered with the EAR, and demanded cessation and elimination of the infringement. In addition, the competitor was instructed to cease, under threat of penalty, the promotion of its electrical goods with special prices, as the purchase price advertised as particularly favourable turned out to be the regular price of the items. Furthermore, the online retailer demanded cessation of the use of an invalid, consumer-disadvantageous withdrawal notice.

The competitor refused to cease the competition law infringements brought to its attention, under threat of penalty, so that the online retailer was forced to obtain a judicial prohibition of the infringements.

Court's decision

By way of Order of 15.12.2014, the Regional Court (LG) Stuttgart – Az. 11 O 258/14 – without oral hearing, decided that the competitor must cease all of the warned infringements.

Commercial distribution of electrical appliances without registration with the EAR is equally unfair competition as misleading advertising with special prices and the use of a withdrawal notice that does not comply with statutory regulations in distance selling.

Conclusion

Electronic devices must be registered with the EAR for the brand under which they are sold and the applicable device type for that brand. Unregistered electrical appliances are not permissible for trade and may not then be advertised, distributed and/or placed on the market. Infringements of these obligations are also always unfair competition and can be warned against by competitors accordingly.

The competitor of our client has in the meantime issued a final declaration and thereby accepted the preliminary injunction of the LG Stuttgart as a final settlement.