Have you received a warning letter from the IDO association? The IDO Interessenverband für das Rechts- und Finanzconsulting deutscher Online-Unternehmen e.V. has been known for years for issuing mass warnings. Many online companies and store operators have been forced to issue a cease-and-desist declaration, which usually results in a cease-and-desist agreement with the IDO association. This can have serious consequences for your company. You may also have already paid warning costs, a flat-rate warning fee or even contractual penalties to the IDO Association.
If so, we have good news for you regarding the IDO Association:
What is the IDO Association?
The IDO Association claims to promote consumer rights and fair competition in online retail. In practice, however, the association is repeatedly criticized:
- Questionable warning activity: It is criticized that the warnings are often standardized and not in the spirit of fair competition.
- Profit-oriented motivation: Critics accuse the IDO association of profiting financially from the warnings.
- Court decisions: In the past, courts have repeatedly questioned the legitimacy of the association, i.e. its legal authorization to issue warnings.
How long are you bound by a cease-and-desist agreement with the IDO Association?
A cease and desist agreement with the IDO Association is generally valid for life. This means that you or your company are permanently bound by the obligations. A breach of the agreement - even years later - can lead to high contractual penalty claims.
Why is the forbearance agreement problematic?
Such a contract can mean considerable disadvantages for your company:
- Lifelong commitment: You are under permanent observation by the IDO Association.
- High risk of contractual penalties: Even minor breaches of the obligation to cease and desist can be expensive.
- Impairment of the company: Such a contract can be considered a negative criterion in a company valuation or sale.
Are there ways to break away from the IDO association?
Yes, there are legal ways to contest or terminate a cease-and-desist agreement:
- Abuse of rights: The Potsdam Regional Court ruled in 2021 (judgment of 18.05.2021, case no. 52 O 62/20) that cease-and-desist declarations to the IDO Association can be successfully challenged and terminated due to abuse of rights.
- Change in the law: A reform of competition law strengthens the rights of entrepreneurs and enables the extraordinary termination of such cease-and-desist agreements.
- Active legitimacy of the IDO association: Before the Cologne Regional Court, we were able to obtain confirmation of dismissals on several occasions because the IDO Association was unable to prove sufficient legitimacy to act. This means that the association was not entitled to issue the warnings.
Why act now?
The IDO Association continues to exploit the legal bindings to enforce high contractual penalties. The sooner you terminate or contest the cease-and-desist agreement, the better you protect yourself against financial claims.
Our track record in the fight against the IDO association
We have already successfully supported numerous companies and enforced the termination of cease-and-desist agreements. Our expertise shows that decisive action pays off.
What you should do now:
- Have your case checked: Our lawyers will analyze whether your cease-and-desist agreement can be contested or terminated.
- Act in good time: Take the opportunity to terminate your contract with the IDO Association out of court or in court.
- Protect your company: Avoid future contractual penalties and regain entrepreneurial freedom.
Contact us now!
We provide you with comprehensive advice and enforce your rights - with a clear strategy and experience. Together, we will release you from your obligations to the IDO Association.
