Newsletter: How companies are unknowingly making themselves liable to prosecution

5/25/2022
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Digital newsletters have now become an integral part of marketing, as newsletters offer fast and regular delivery at low costs. Personalized content, which allows customers to be addressed directly, is also convincing entrepreneurs from all industries. But watch out! Even though it seems easy at first glance, newsletter marketing involves various risks for the sender. Without realizing it, many companies are currently moving towards Unfair Competition Act on thin ice. To prevent you from breaking in, we have summarized the most important points for you in our article.

The Unfair Competition Act

The UWG is part of unfair competition law and came into force for the first time in 1896. Together with antitrust law, which prevents price agreements, for example, it forms competition law in the broadest sense. The aim of the UWG is to prevent unfair (unfair, dishonest) conduct. This is intended to protect consumers, competitors and other market participants as well as the free market itself. Acting unfairly is someone who, for example:

Put simply, the UWG regulates how companies may behave on the market. Although our economic system provides for competition in principle, regulation is still necessary.

When newsletters are illegal

Newsletters are a popular means of customer loyalty in most industries. News about products and infrastructure or discount campaigns are ideal for staying in touch with customers. Sending a newsletter in accordance with the law is more complex than simply writing an e-mail.

1.) Opt-In

Who does not violate SECTION 7 UWG and wants to risk the GDPR, requires express consent to contact the recipient. Signing up for a newsletter is not yet enough. This is due to the fact that up to now there is only a single opt-in, i.e. a simple confirmation.

2.) Double Opt-In

Since the GDPR, double confirmation is required so that companies can prove the consent of a recipient and contact them in a legally secure manner. The recipient only expressly agrees once the subscription to the newsletter has been confirmed again. Most of this is done via a separate email.

3.) Opt-out

Anyone who unsubscribes from a newsletter or objects to receiving a newsletter uses an opt-out. The term describes the technical possibility of revocation or objection. This is often implemented with a link at the end of a message, for example with the text “Unsubscribe from newsletter”.

4.) Looks matter!

However, care should be taken when designing such transactional emails. The appearance of these emails must be as neutral as possible, otherwise an advertising character could arise. This is particularly evident by a Judgment of the Stendal Regional Court. The logo of a company, including the sentence, was enough “Welcome to XXX” within the confirmation email to make the email considered advertising.

UWG: Ignorance does not protect against punishment

It doesn't take bad will to violate the UWG. For example, last year, a service provider had to send an email to a customer 300, - € fine Pay. The footer of the largely relevant email contained a two-line advertisement:

“XXXXX. Organize, think along, get it done.

Use Sie www.XXXX.de”

The customer then rated the entire message as an advertisement. The problem here? He had not previously agreed to the sending of advertising via double opt-in. After the customer sued the service provider, the decision was made Berlin Court of Appeal ultimately in his favor.

UWG - Gesetzt gegen den unlauteren Wettbewerb

The most important things at a glance

  • E-mail newsletters without consent are considered unacceptable harassment under UWG
  • Explicit consent is obtained via the double opt-in
  • The double opt-in message must be free of advertising and neutral in appearance
  • The recipient must be able to unsubscribe from the newsletter at any time
  • Violations may result in warnings and financial penalties from supervisory authorities

Professional online marketing support

Anyone looking for professional support with newsletters and online marketing will receive two ingenious solutions with the Socialwave marketing package. First, Socialwaves free guest WiFi collects customer data as well as At the same time, the necessary consents. So you can start your mailings right away! If you cannot or do not want to provide WiFi, use QR codes on stickers and table stands. In addition, the system also collects positive reviews on Google, which improves your website. Simple, fast and 100% legally compliant.

conclusion

In terms of long-term customer loyalty, the newsletter is one of the most successful marketing measures. There is hardly a tool with a better cost-benefit ratio. However, anyone who wants to use newsletters must comply with the UWG and the GDPR. They protect the free market, consumers and market participants, but can be the undoing of the sender. Partner like Socialwave simplify the design, dispatch and legal aspects of newsletters.