Decision of the Federal Supreme Court on the Confederation's Lawsuit against X. AG for Unfair Competition

Facts

X. AG in liquidation operates a Tourist Directory via the Internet and CD-Rom. With standardized contracts that it sends exclusively to potentially interested businesses abroad, these businesses can register for free (basic entry) and also place a paid order for a detailed entry (only on the CD).

The Swiss Confederation accuses X. AG of conducting questionable business practices with entries in a company register from Switzerland. The corresponding application forms gave the impression that the entry was free of charge. In reality, by filling out and signing the form, a multi-year advertising contract is concluded. The costs for the entry are disproportionate to the benefit. To collect the advertising costs, first dunning letters and then debt collection agencies are used. These practices have led to a large number of complaints from all over the world, some of which are directed against the registry company operating from Switzerland or against the Swiss debt collection agencies. The business conduct of X. AG is damaging the reputation of Switzerland abroad.

Considerations

The Federal Supreme Court decides that the Confederation's right of action under Art. 10 para. 2 lit. c UCA and the special provisions of the UCA referred to in Art. 9 UCA constitute a "loi d'application immédiate" within the meaning of Art. 18 PILA, which requires unconditional application in the public interest, regardless of any conflicting references in the special provisions of the PILA.