The judgement of the German Supreme Court – Docket No.: I ZR 187/97 – the judgement of the Regional Appeal Court in Duesseldorf of 8th October 1998 – “Mobile phone for EUR 0.00”

1. An offer presented in an advertisement to buy a mobile telephone for free or almost for free when a mobile phone contract is concluded does not constitute a free gift offer.

2. Such an eye-catching advertisement does not constitute an infringement of competition law under § 1 of the Unfair Competition Act in the form of excessive baiting.

3. Such an advertisement, however, is misleading and violates the Price Indication Regulation, if the costs ensuing for the consumer due to the conclusion of the mobile phone contract are not made clear to him. This means that the indication of costs related to network access must be placed in an area of the advertisement well visible for the customer. Furthermore, price indication must be legible and complete.