Misleading Contract Forms of X.________ AG in Liquidation

Facts

[X. AG] in Liquidation (Appellant) operates a TouristDirectory via the internet and CD-Rom. It uses contract forms that give the impression of a free offer, while in reality, signing the form concludes a multi-year insertion contract with costs of over EUR 3,000. The Swiss Confederation (Respondent) filed a lawsuit against the Appellant for unfair competition.

Considerations

The Federal Supreme Court upheld the judgments of the lower instances, finding that the Appellant's contract forms have a misleading potential that violates the principle of clarity of market conduct under Art. 2 and Art. 3 lit. b UCA. The forms are designed to distract the average reader from the fact that they are entering a significant financial obligation by signing. It is only upon careful reading of the last part of the text that it becomes clear that the entry on…