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Can a retailer advertise tobacco products as long as the advertisements are displayed inside its premises? Not necessarily. A recent decision by the Hanover Regional Court demonstrates that the physical placement of an advertisement is not the only factor determining whether it is legally permissible.
The case concerned advertisements for nicotine sticks displayed in the windows of a kiosk, where they were visible from outside. The court found that these advertisements constituted prohibited outdoor advertising under the German Tobacco Products Act, in conjunction with the German Act Against Unfair Competition (UWG). The decisive factor was not whether the advertising materials were physically located outside the store, but whether they could be seen from outside and were therefore accessible to the public.
The statutory exemption for specialty tobacco retailers did not apply either. According to the court, generating a high percentage of revenue from tobacco products is not, by itself, sufficient to qualify a business as a specialty tobacco retailer entitled to benefit from the advertising exemption. Instead, the business must demonstrate a recognizable specialization, particularly through its product range and the availability of expert advice.
The decision highlights the strict limitations imposed on tobacco advertising to protect public health and minors. Kiosk operators should therefore consider not only which products they advertise, but also where their advertisements are placed and who can see them.
Our associate Kathrin Mandel, a Certified Specialist Attorney in Intellectual Property Law (Germany), provides an in-depth analysis of the ruling and its implications under German unfair competition law in the legal journal GRUR-Prax.
The full article was published in GRUR-Prax and is available through Beck-Shop.