LHR obtains preliminary injunction against Swiss Amazon retailer for advertising with prices ‘incl. VAT’
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The Regional Court of Cologne (LG Köln, Beschluss v. 18.8.2016, Az. 31 O 263/16) has issued a unilateral injunction against a Swiss Amazon retailer at the request of Lampmann, Haberkamm & Rosenbaum Rechtsanwälte (LHR).
This prohibits retailers from claiming that the prices of products delivered from Switzerland to Germany include VAT, when in fact they are net prices and the customer runs the risk of incurring import VAT on the delivery at customs.
In the event of infringement, a fine of up to € 250,000 or up to six months’ imprisonment may be imposed.
The decision has been issued by way of a ruling. A final decision is reserved for proceedings on the merits. Unless the retailer recognises the ruling as a final ruling.
Misleading price advertising
The Cologne Regional Court thus followed the competitor’s argument that the specific price advertising was misleading.
By indicating ‘incl. VAT’ in the price, customers are led to believe that these are gross prices, whereas in reality VAT is not included. However, VAT or import sales tax is incurred when importing into Germany if the order exceeds the exemption limit of €22. Import sales tax of 19% VAT is then levied by German customs. This not only fools buyers into believing that the price is low, which may actually be higher, but also – and this is almost worse – that no further taxes or duties are incurred, although in this case they may be guilty of tax evasion if they import the goods without registering accordingly.
In addition to the claim for injunctive relief, there are also claims for damages, which the represented retailer will assert in separate proceedings. (la)
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