Know the rules of the game.
Germany is one of the most attractive markets in Europe, and one of the most regulated. Some of its rules have no direct equivalent elsewhere and regularly catch foreign companies by surprise, often at the moment a first letter from a German lawyer arrives. This page gives an overview of the points I see most often in practice. You can write to me in English.
What regularly surprises foreign companies
- Competitors enforce the law themselves. In Germany, competitors and certain associations can send a formal cease-and-desist letter (Abmahnung) for breaches of consumer protection or advertising rules – for example a missing imprint, incorrect price information or misleading claims. The letter usually sets a short deadline, demands a declaration with a contractual penalty and asks you to pay the other side’s legal fees. See Unfair competition law.
- Websites need an imprint. Commercial websites and social media profiles aimed at Germany must name the provider with a full postal address, contact details, the commercial register and VAT number where applicable (Impressum). Missing or incomplete information is a classic reason for a cease-and-desist letter.
- Standard terms are strictly reviewed. German courts review standard business terms (AGB) closely, and not only in consumer contracts: clauses that are common in other countries, such as broad limitations of liability, can also be invalid between businesses. Where both sides refer to their own terms, the result is often unclear.
- Goods must be inspected at once. Between merchants, the buyer must inspect goods without undue delay and give notice of defects immediately. If the notice comes too late, warranty claims can be lost.
- Dismissals follow strict rules. In businesses with more than ten employees, employees enjoy general protection against dismissal after six months. A dismissal must be in writing with a handwritten signature – e-mail is not enough – and a works council, if there is one, must be consulted beforehand.
- Court payment orders move fast. A creditor can obtain a court payment order (Mahnbescheid) without the court examining the claim. You have two weeks to object; otherwise an enforceable title can follow quickly.
- Data protection is enforced by authorities, competitors and individuals. Besides supervisory authorities, individuals claim access and damages under the GDPR, and in some cases competitors take action as well.
Glossary
German legal terms you are likely to come across:
- Abmahnung – formal cease-and-desist letter, usually with a deadline and a demand for costs; in employment law also a formal warning to an employee.
- Unterlassungserklärung – declaration to cease and desist, usually combined with a promise to pay a contractual penalty (Vertragsstrafe) for each future infringement.
- Einstweilige Verfügung – preliminary injunction, often obtained within days.
- Schutzschrift – protective letter filed in advance with a central register so that a court hears your side before issuing a preliminary injunction.
- Mahnbescheid / Mahnverfahren – court payment order / summary debt collection procedure.
- Impressum – mandatory provider information on websites.
- AGB (Allgemeine Geschäftsbedingungen) – standard business terms.
- Gewährleistung / Garantie – statutory warranty for defects / voluntary guarantee.
- Kündigungsschutzklage – action against a dismissal, to be filed within three weeks.
- Betriebsrat – works council with co-determination rights.
- GmbH / UG (haftungsbeschränkt) – limited liability company / its low-capital variant.
- Handelsregister – commercial register.
- Rechtsanwalt – German lawyer, admitted to a regional bar.
- Fachanwalt – officially certified specialist lawyer, a title granted by the bar after proof of special knowledge and practical experience.
- RVG – the German statutory fee scale for lawyers, based on the value of the matter.
How I can help
I advise and represent companies from abroad that sell to customers in Germany, work with German partners or employ staff here – in English or German, by phone or video conference. More on my work in IT law, intellectual property, civil and commercial law, company law and employment law. If a deadline is running, please get in touch as early as possible.
This page contains general information on German law and is not legal advice for an individual case.