Definition and meaning of shop window displays
Shop window displays refer to merchandise presentations in a shop or sales area that are publicly visible through windows. Their primary purpose is customer advertising by making the product range and the retailer’s pricing policy visible. The legal framework governing shop window displays includes, in particular, regulations from commercial, competition, consumer, tax, copyright, as well as public law.
Legal framework for shop window displays
Aspects of competition law
Shop window displays regularly constitute a commercial act within the meaning of the Act Against Unfair Competition (UWG). They are to be regarded as an advertising measure aimed at promoting the sale of goods or services. This means that all legal principles applicable to advertising also apply to shop window displays.
Misleading information and disclosure obligations
According to §§ 5 et seq. UWG, any misleading representation is prohibited. This particularly concerns:
- The correct indication of prices, product characteristics, and origin.
- Accurate depiction of goods to prevent misconceptions among customers.
Particular importance is placed on price accuracy and price clarity. Prices named in shop window displays must indicate the final price (including all taxes and other price components in accordance with § 1 Price Indication Regulation, PAngV). Violations may be subject to warnings or fines.
Consumer law requirements
Price Indication Regulation (PAngV)
The Price Indication Regulation governs the obligation to display prices for goods and services offered to end consumers. For shop window displays, this means:
- Every displayed product must be provided with a final price.
- In case a base price must be indicated (e.g., €/kg or €/l), it must be clearly visible in addition to the final price.
- Exceptions apply, for example, to services that are individually agreed upon or where no end consumers are addressed.
Distance selling law and shop window displays
Shop window displays are generally not considered “distance selling offers” within the meaning of §§ 312c et seq. BGB, provided there is no direct online or mail-order sales. However, they may fall under distance selling law if reference is made to the possibility of online orders.
Commercial law aspects
The display of goods in a shop window is legally qualified as an invitation to submit an offer (invitatio ad offerendum). It does not express an intention to be legally bound to conclude a contract. The legal commitment arises only with the acceptance of an explicit offer from the customer.
Tax law requirements
Shop window displays themselves do not trigger tax obligations. However, in the context of price indications for end consumers, all taxes, in particular value added tax (VAT), must be included in the total price (§ 1 para. 1 sentence 1 PAngV in conjunction with § 14 UStG). Violations of these regulations may have tax law and regulatory consequences.
Copyright and industrial property protection
Design and use of images
For shop window decorations that use copyrighted image, text, or audio material (such as photos, posters, or music), their use is generally only permitted with the appropriate usage rights. Unauthorized public display may result in claims for injunction, damages, and licensing fees.
Trademark protection and product imitation
If protected trademarks, designs, or patterns are used in shop window displays, the provisions of trademark law (Trademark Act), design law, and relevant competition law apply. Imitations or infringements may result in civil and criminal sanctions.
Public law / Building law
Approval requirements and design regulations
The installation of shop windows and their design may be subject to building regulations and local design requirements. In many municipalities, regulations govern advertising signs, illuminated advertisements, and the size and design of shop window displays. Preservation orders must also be observed.
Store closing legislation
Illumination and visibility of shop window displays after closing hours are generally permitted, provided this does not violate the Shop Closing Act or nuisance provisions of emission control law (for example, unwanted light emissions).
Typical problems and legal consequences
Warnings and fines
Incorrect, incomplete, or unlawful information in shop window displays may be prosecuted by competitors, consumer associations, or regulatory authorities. Typical measures include:
- Warnings and injunctions pursuant to the UWG
- Administrative offence proceedings (especially under PAngV)
- Claims for damages in case of unfair competition violations
Claims for damages and injunctive relief
In the event of copyright or trademark infringements, rights holders may claim for injunction, destruction, recall, and compensation for damages.
Special features in the international context
In cross-border commercial situations, the respective country-specific regulations must be observed. In particular, within the European Union, directives such as the Unfair Commercial Practices Directive (2005/29/EC) and the Consumer Rights Directive (2011/83/EU) harmonize numerous legal standards.
Summary
From a legal perspective, shop window displays are comprehensively regulated in terms of advertising law as well as civil, tax, public, and copyright law. There are strict requirements, particularly regarding price information, avoiding misleading advertising, as well as observing copyright and local regulations. Violations can have far-reaching legal consequences, which is why full compliance with all relevant regulations is in the interest of the business entity concerned.
Frequently Asked Questions
Who is liable for damages caused by a shop window display?
In the case of damages caused by a shop window display – for example, if a poorly secured exhibit falls on passers-by or vehicles – the owner or operator of the business is generally liable. The legal basis in Germany is § 823 BGB (German Civil Code), according to which anyone who, intentionally or negligently, unlawfully injures the life, body, health, freedom, property, or any other right of another is obliged to compensate the other for the resulting damage. The shop owner bears the so-called duty to maintain safety and must ensure that the display does not pose a danger to third parties. If there is fault, for example due to improper securing, he can be held fully liable. If an external decorator is commissioned with the design, this service provider may under certain circumstances share responsibility. Proper business liability insurance can cover the financial risk, but does not release the owner from his duty of care.
What special considerations apply to copyright when using images and trademarks in shop window displays?
If copyrighted materials – such as photos, graphics, logos, or trademarks – are used in a shop window display, copyright and/or trademark law must be strictly observed. Public display is already deemed to exist if the work is visible from outside, thus requiring the rights holder’s consent (§ 19a UrhG). With trademarks, special care must be taken not to use trademark-protected logos or product imitations unlawfully (§§ 14 et seq. MarkenG). An infringement may result in claims for damages and injunctions. For example, anyone displaying fashion with prominent logos requires a contractual legal basis, such as supply contracts with the appropriate rights of use for the trademark or image material. This also applies to the use of copyrighted photographs for advertising posters and displays.
What restrictions must be considered regarding the size and placement of goods in shop window displays?
The size and placement of goods in shop window displays in Germany are subject both to public law regulations (in particular building codes and special use rights of public space) and private law requirements (lease agreements, neighbor law). According to most state building codes, displayed objects may not protrude onto sidewalks or public space, as this would otherwise require a special use permit. The placement of particularly large or bulky items may also require approval, especially in listed buildings or pedestrian zones with design bylaws. Obstructions to road traffic visibility must also be avoided. Lease agreement clauses may impose restrictions regarding external design and the appearance of the building. Violations of these provisions may result in fines, requirements for removal, and in individual cases also claims for damages.
Is price labeling required for shop window displays?
According to the Price Indication Regulation (PAngV), there is a general obligation to display final prices when goods or services are offered in shop windows. Pursuant to § 4 para. 1 PAngV, this is always required if the consumer is given the opportunity to purchase, which is already assumed with mere presentation in the shop window. Both total prices and, where required, base prices (for goods in pre-packaged containers, open packaging, or as sales units without wrapping) must be easily recognizable and clearly legible. Failure to provide or inadequate presentation of prices may result in warnings from competition associations or consumer advice centers and is subject to fines. Exceptions apply to goods to be made individually, provided that no specific finished product with a price is displayed in the shop window.
What data protection aspects must be considered with shop window displays?
Data protection becomes relevant for a shop window display especially when personal data are made identifiable. This is the case, for example, if employee photos, customer data, or other identifying information are displayed publicly. According to the General Data Protection Regulation (GDPR), explicit consent must be obtained from the persons depicted or named. The same applies for video installations where passers-by may be filmed and processed. If digital screens are used that detect and capture passers-by via sensors, this may not be done without their consent. Data protection violations can lead to significant fines and claims for damages. It is therefore recommended to always review shop window displays for data protection compliance in case of doubt.
Are there special requirements for the display of goods relevant to the protection of minors?
When displaying products relevant to the protection of minors, such as tobacco, alcohol, erotic items, or media with age restrictions, strict regulations according to the Youth Protection Act (JuSchG) and other special laws apply. Youth-endangering media or products may not be displayed in shop windows if minors are likely to see them when passing by (§ 15 JuSchG). Furthermore, pictorial representations, such as youth-endangering content, are also prohibited. For tobacco or alcohol advertising, a visibility ban for children and adolescents applies. Violations of these provisions may result in administrative offence proceedings, substantial fines, and may even be criminally relevant.
What is the legal situation regarding lighting, illuminated advertising, or music in shop window displays?
The design of shop window displays with light, illuminated advertising, or acoustic elements is subject to a variety of statutory requirements. According to the respective state emission protection laws, light and noise emissions may not cause unreasonable disturbance to the neighborhood; especially in purely and generally residential areas, quiet hours must be observed and light emissions limited to a reasonable level. Illuminated advertising may also be subject to local design bylaws and often requires approval. Acoustic elements, such as music or commercial announcements transmitted outdoors, typically require permits and are often prohibited in many municipalities. Copyright law must also be observed: for public performance of protected music, an appropriate license must be obtained, for example from GEMA. Violations can result in warnings, claims for injunction, as well as fines.
