GRP Rainer LLP

Solicited Marketing to Buy Gold Outside Branch Offices Objectionable

Business ideas involving the purchase and sale of gold are booming at the moment, but they are not always without legal objection.


Cologne, NRW -- (SBWIRE) -- 06/04/2013 -- GRP Rainer Attorneys and Tax Accountants in Cologne, Berlin, Bonn, Düsseldorf, Essen, Frankfurt, Hamburg, Hanover, Munich, Stuttgart, Bremen, Nuremberg and London explain: At times when gold prices seem to be in crisis, many citizens garner fears of suffering financial losses.

Sometimes gold trade and exchange in establishments are conveyed beyond the confines of a business office. In such cases, precious metal retailers target the customers at other businesses with the offer to purchase and sale gold. Through so-called sales promotions which are advertised through newspaper advertisements and marketing posters, traders solicit customers even in grocery stores with the idea of selling off their personal inventory of gold.

The classification assigned by the Commercial Code to such a business approach falls under itinerant or traveling trade. This occurs when someone without pre-existing orders and outside of the confines of a commercial presence (or in the absence of such) carries on commercial activities.

The judgment issued by the Schleswig-Holstein Higher Regional Court from 24 April 2012 (6 U 6/11), voiced its opinion against the utilization of such sales strategies. The plaintiff, a retailer of precious metals, precious stones, beads and jewelry, operated such gold sales campaigns as described above in bakeries, among other business establishments. In addition, customers of the bakery were actively approached by the plaintiff for business purposes and, consequently, the proposition to buy gold was solicited, without previous order of the customer. According to the judge, the customers were downright surprised and overpowered. The clear legal ban on itinerant trade of precious metals in this case from the point of the judges had to be abstained for the purposes of the defendant, an industry competitor.

Therefore, dealers of precious metals must not accept that competitors carry out sales and marketing campaigns in establishments outside their place of business. An application for a restrictive injunction may be successful under certain circumstances, and an attorney working in competition law can advise against such uncertainties.

About GRP Rainer LLP
GRP Rainer LLP is an international firm of lawyers and tax advisors who are specialists in commercial law. The firm counsels commercial and industrial companies and corporations, as well as associations, small- and mid-sized businesses, self-employed freelancers and private individuals worldwide from offices Cologne, Berlin, Bonn, Dusseldorf, Essen, Frankfurt, Hamburg, Hannover, Munich, Stuttgart, Bremen, Nuremberg and London UK.

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