Unfair Commercial Practices Directive, Chapter 2, Article 5, 1. Unfair Commercial Practices Directive, Chapter 2, Section 1, Article 6, 1.

The false statement by a trader during contract negotiations with consumers, that it has taken over its competitor, can constitute a violation on unfair commercial practices.

The parties were competitors in the industry of energy supply.

An agent of the defendant, a trader acting in the sector of electrical power supply, alleged during several contract negotiations with consumers (potential customers) that the defendant had taken over the plaintiff's supply network.

In fact, the defendant had never taken over the plaintiff's supply network.

The plaintiff requested a cease-and-desist order in respect of these allegatins.

In its reasoning, the court established that the false assertions concerned constitute a misleading commercial practice, because the defendant aroused the false impression that the defendant had taken over the plaintiff's market power.

According to the court, such conduct is able to influence a consumer's transactional decision whether to contract or not to contract with a certain energy supplier.

With this false statement, the defendant suggested to consumers that their initial supplier would no longer have the supply network. Moreover, any trust in the plaintiff's past services was thereby transferred to the defendant. Furthermore, the defendant pretended to have a particular size and capacity, which it did not have.

The court thus concluded that the defendant committed a misleading commercial practice.

Does the false claim by a trader during contract negotiations with customers, that it has taken over a competitor, constitute a misleading commercial practice?

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The plaintiff's request was granted.