LHR obtains court ban against YouTube advertising video of an “investor protection law firm”

09.11.2017 From Arno Lampmann

The Regional Court of Hamburg (LG Hamburg, Beschluss v. 11.10.2017, Az. 315 O 378/17) prohibited a law firm specializing in banking and capital market law from unlawful advertising with false, disparaging claims at the request of an issuing house.

Be careful with client advertising on YouTube!

In a promotional video posted on YouTube, the law firm disparaged the issuing house’s financial products for no reason and even described it as a “masterful capital destroyer”. Following the disparagement, there was of course also a reference to the fact that customers should have their investments checked as part of a free initial assessment.

The Hamburg Regional Court agreed with the applicant in its interim injunction that the client advertising violated the personal rights of the issuing house, as the disparagement had no basis whatsoever, and ordered the law firm to cease and desist by way of an interim injunction. The law firm must now delete the video immediately and also refrain from making further similar disparagements.

In the event of repetition, the law firm faces a fine of up to € 250,000.00

In the event of non-compliance, a fine of up to € 250,000 or up to six months’ imprisonment may be imposed. The decision has been issued by way of an order and must be complied with immediately. However, it is not legally binding and can still be appealed against by the law firm concerned. The Hamburg Regional Court has set the amount in dispute at € 50,000.

In addition to the claim for injunctive relief, there are also claims for damages, which the issuing house will assert in separate proceedings.

Lawyer Arno Lampmann from the law firm LHR:

“In recent years, the liberalization of advertising law for the liberal professions has led many lawyers to advertise not only more freely, but also more aggressively and – as the present case shows – unfortunately also simply illegally with a view to quick fee revenue.

Nowadays, a YouTube video is quickly created and uploaded. Lawyers who are committed to protecting investors often fail to consider that unlawful, untrue advertising in the financial sector can cause considerable damage that is not covered by the lawyer’s financial liability.”