Wave of warnings against hotels – be careful when advertising with stars

Beware of warnings! The German Hotel and Restaurant Association (DeHoGa) and the Wettbewerbszentrale are taking action against unfair star advertising.

Many hotels like to advertise with their stars. Whether in the hotel’s logo, on booking portals or classically on the hotel’s façade, the stars are a must. However, if the hotel does not have an official classification from the German Hotel and Restaurant Association (DeHoGa), these hotels now face costly warnings.

Wettbewerbszentrale warns hotels

The warnings are sent out in large numbers by the Zentrale zur Bekämpfung unlauteren Wettbewerbs Frankfurt am Main e.V. It is supported by DeHoGa, which also advertises the procedure in order to classify new hotels. According to DeHoGa, it uses screening software to identify star offenders who advertise on the Internet with stars they have awarded themselves.

Advertising with stars without official classification anti-competitive

The DeHoGa is of the opinion that advertising with stars in the hotel logo – without a generally recognized classification – is anti-competitive and must therefore be refrained from. Advertising with non-existent stars on online booking portals such as Trivago, Booking.com, HRS and Expedia is also inadmissible. Advertising is only permitted if the hotel has a corresponding official classification.

But be careful with the warnings: The Wettbewerbszentrale directly requests the hotels to submit a pre-formulated cease-and-desist declaration with penalty clause. In addition, the operator of the hotel(s) should undertake to bear the costs of the warning and to pay a contractual penalty in the event of a breach of the obligation to cease and desist.

Incorrect star rating is misleading

According to § 5 Abs. 1 sentence 1 UWG, any misleading commercial act that is also noticeable in business dealings is unlawful and can be warned. These requirements are particularly fulfilled in the case of advertising with unclassified hotel stars. Based on the average hotel customer, the number of hotel stars is highly relevant when making a booking. The more stars a hotel has, the nicer and better it appears to be and is therefore more likely to be booked.

Advertising with own ratings permissible as long as there is no risk of confusion

However, the situation is different if the guest or booker can recognize that the number of stars does not originate from DeHoGa and is a separate rating (LG Aurich, judgment of 15.09.2009 – 3 O 191/08). However, this is only the case if signs other than the typical jagged stars are used. In addition, a corresponding note should be used to indicate that this is not a hotel rating in accordance with the DeHoGa guidelines.

Caution when signing pre-formulated cease-and-desist declarations

Whether the warning is justified always depends on the individual case. Anyone who has received a warning letter in this or a similar case is advised to seek legal advice before signing the cease-and-desist declaration with penalty clause. This is because the pre-formulated cease-and-desist declarations often go too far and there is a risk that the person being warned will inadvertently violate their own declaration. In addition, the assessment as an anti-competitive act is always a question of the individual case and, in case of doubt, the advice of an expert can be worth its weight in gold.

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