Classification of gold buying events within the context of itinerant trade law
The Higher Administrative Court of North Rhine-Westphalia (decision dated 17.03.2022, Ref. 4 A 1381/18) determined that temporary actions for buying gold, known as gold buying events, fall under the statutory ban on buying and selling in itinerant trade. Thus, providers must observe comparable legal conditions as other market participants in itinerant trade.
Legal background: Regulations on itinerant trade
The Itinerant Trade Act regulates commercial activities conducted outside fixed business premises or without prior order from the customer. According to § 56b para. 1 no. 2 GewO, the purchase and sale of precious metals such as gold is generally prohibited in itinerant trade. This provision primarily serves consumer protection and ensures a regulated market conduct.
Assessment by the OVG NRW: Applicability to gold buying events
In the case under consideration, the legal issue was whether the prohibition on buying and selling also applies to gold buying events, where providers temporarily rent spaces, for example in hotels or event locations, to purchase precious metals.
Characteristic features of itinerant trade
The Higher Administrative Court emphasized that itinerant trade is characterized, among other things, by location changes, the absence of fixed offices, and short-term customer interactions. Gold buying events, where various locations are visited at specific times, fulfill these characteristics according to the court’s view. It does not matter whether the events occur in public or private spaces, as long as no permanent storefront is operated.
Purpose of the statutory prohibition
The prohibition protects both consumer interests and the functionality of the regulated market. The legislator intended to prevent providers from exploiting customer inexperience or surprise moments at spontaneous events in different locations. Particularly with high-value goods like gold, there is an increased risk of non-transparent pricing or inappropriate purchasing decisions.
No exception for “stationary” marketing events
The case decided by the OVG NRW involved a provider renting premises for specific periods to conduct gold buying. The argument that this constituted a de facto stationary business location did not hold. According to the court, the variability of the location, the limitation of the action periods, and the absence of a permanent establishment meet the conditions for itinerant trade and therefore for the associated prohibition under the Trade Regulation Act.
Outlook and legal classification
The judicial decision of the OVG NRW must be observed until there are different supreme court guidelines. As long as further proceedings are pending, the presumption of innocence applies until a final, legally binding judgment is issued. (Source: https://urteile.news/OVG-Nordrhein-Westfalen_4-A-138118_Goldankaufaktionen-fallen-unter-das-An-und-Verkaufsverbot-im-Reisegewerbe~N31534)
Companies and organizers of temporary marketing events in the field of precious metals should carefully consider this legal situation and continue to monitor developments in the trade law environment.
For further questions regarding legal issues related to itinerant trade, trade law requirements, or contract drafting in commerce, an individual review is recommended. MTR Legal offers competent and tailored legal advice in commercial law at the following link: Legal advice in commercial law.
