Consumer Protection

• Author: International Law Group

The plaintiff in this case manufactures recreational electronic appliances. The defendant sells products through the internet by way of "powershopping." Plaintiff complained that defendant's "powershopping" arrangements contravened the German Price Discount Law (Rabattgesetz, RabattG) (GPDL). Defendant denied this, claiming that the program beneficially increases consumers' buying power and lowers prices.

The defendant described "powershopping" as follows: "The Powershopping price level shows you the sales price, for example, for a bicycle. Depending on the number of purchasers, the bicycle costs between 300 and 500 German Marks. If there are less than 21 people to purchase the bicycle for 500 German Marks, then they will purchase it for 500 German Marks. If there are more than 20 buyers who are willing to buy it for 450 or 500 German Marks, then every buyer will receive it for 450 German Marks ..." (As quoted by Court in opinion).

The district court denied the plaintiff's motion for a preliminary injunction. Upon plaintiff's appeal, the State Supreme Court of Hamburg grants the injunction.

The Court concludes that the defendant's pricing system does violate the GPDL. The defendant does not...