Business startup: Fairness and transparency of business practices

If you want to start a business in Germany, you must observe certain regulations and guidelines. Here you will find information on the obligations of fairness and transparency.

Fairness and transparency of business practices

When starting a business, you should pay attention to fairness and transparency. To be avoided are unfair commercial practices such as:

Aggressive business practices

• Creating the impression that consumers cannot leave the sales area without having concluded a purchase contract.
• Personal visits to a consumer's home while disregarding the consumer's request to leave or not to return.

Misleading practices

• The incorrect claim that among the signatories of a Code of Conduct to belong to.
• The description of a product with the indication that it is available „free of charge“, „free“, „cost-free“ or similarly, even though consumers have to bear any costs other than the unavoidable costs.

Consumer Right of Withdrawal

Consumer withdrawal rights are primarily set out in Civil Code (BGB). In certain cases, consumers may withdraw from a purchase within a 14-day First terminate a contract they have concluded with a company (consumer contract) without giving reasons.

The modern forms of selling goods and services carry the risk that consumers are taken by surprise when concluding the contract. They may not be sufficiently informed about the content and significance of the contract. Therefore, in the case of special forms of distribution—i.e., consumer contracts concluded outside of business premises, so-called „Door-to-door sales“and with Distance Sales Contracts, fundamentally a right of withdrawal according to § 312g of the German Civil Code (BGB). The right of withdrawal applies to consumer contracts that have a paid service provided by the entrepreneur as their subject matter in accordance with § 312(1) of the German Civil Code (BGB). Exempted from the right of withdrawal are the ones in § 312(2) of the German Civil Code (BGB) the contracts listed above, such as notarized contracts, real estate contracts, construction contracts, contracts for the transportation of persons, medical treatment contracts, and minor contracts performed immediately with a value not exceeding 40.00 EUR.

Unfair Contract Terms

Under EU law, the standard contract terms used by a merchant must be fair. If certain clauses in a contract are unfair, they are not binding on consumers, and merchants cannot rely on them. For more detailed information on unfair contract terms, see the Link.

Regulations regarding the safety and protection of products sold to consumers

All products may be made available to others by economic operators, such as manufacturers, authorized representatives, importers, or dealers. To do so, they must be safe when used as intended and comply with the applicable legal requirements. European Community (EC) regulations require certain products—such as machinery, toys, or electrical appliances—to be marked with the CE mark, also known as CE marking.

By affixing this CE mark, manufacturers and their authorized representatives declare that the product has been manufactured in accordance with applicable European health and safety requirements. The CE mark must:

• clearly visible,
• readable and
• be permanently attached to the product.

An important task related to product safety is the Market Surveillance. This task is intended to ensure that the relevant requirements—for example, those related to the safe use of the product—are met by the individual economic operators. To this end, market surveillance authorities conduct random inspections of products and, in the event of defects, contact the affected economic operators.

• Product Liability: If, despite all safety precautions and inspections, a defective product is placed on the market, you may be held liable.

• Product Responsibility: Another important area is product responsibility. This means that, as a manufacturer, you are responsible for the entire "lifecycle" of a product—that is, from the initial design through to environmentally sound disposal. In Germany, for example, the relevant EU directives are implemented through regulations on electrical and electronic equipment, packaging, end-of-life vehicles, and waste oil, as well as the Electrical and Electronic Equipment Act and this Battery Act Implemented.

Fair consumer contracts

On March 1, 2022, regulations for fairer consumer contracts (Fair Consumer Contracts Act) entered into force. These ensure that,

• that consumers automatic contract renewals be able to cancel contracts for regular deliveries of goods and services, such as streaming services or magazine subscriptions, significantly faster.
• In the process, a Cancellation button requirement introduced to simplify termination processes. One Obligation to issue an acknowledgment of receipt The cancellation adds the button. This is intended to clearly communicate to consumers that their cancellation has been received.
• Discussed on the phone Energy supply contracts must also be confirmed in writing, for example by letter, email or SMS.

• Fair Consumer Contracts Act
• Laws regarding the right of withdrawal
• Laws on the placing on the market, the take-back and the environmentally compatible disposal of electrical and electronic equipment
• Act on the Placing on the Market, Take-back and Environmentally Sound Disposal of Batteries and Accumulators

Abusive contract clauses on the Your Europe Portal

This support service assists you in exercising your rights and fulfilling your obligations within the European Single Market.

• Single Point of Contact Network