If you are a lawyer, chances are you have at some point submitted a
form with publishable and confidential matters you have handled to a
legal directory, invited colleagues and clients to recommend you,
recommended colleagues yourself or proudly displayed a badge of the
legal directory that ranked you on your firm's website or in your email
signature. The recent decision
Top-Mediziner of
the German Supreme Court ("GSC", case I ZR 130/25) may call into
question the lawfulness of using these rankings and awards in
advertising.
Background The defendant publishes
a health magazine called "Focus Gesundheit" (meaning "Focus Health"),
which contains annual doctor lists. The lists rank physicians across
various specialisations based on criteria including peer
recommendations, self-assessments by the doctors, patient reviews and
other factors such as qualifications, memberships in professional
associations and publications. The relevant factors are explained on the
defendant's website.
Physicians who are ranked may use one of
the following logos for their marketing materials, which display their
ranking as a "Top Physician" or a "Recommendation":
Of course, the use is subject to an annual licence fee to be paid to the defendant.
The
Wettbewerbszentrale (a German private association for the protection of
fair competition) brought proceedings against the defendant arguing
that the logos are misleading, not transparent and constitute unlawful
comparative advertising. The District Court of Munich I agreed. The
Higher Regional Court of Munich disagreed, holding that the logos were
not misleading because the underlying methodology was sufficiently
objective and the public understood that physician rankings are
inherently subjective. Wettbewerbszentrale filed an appeal to the GSC.
The German Supreme Court’s decision The judges overturned the Higher Regional Court and remanded the case.
The plaintiff's claims were based on the German implementation of the
Unfair Business-to-Consumer Commercial Practices Directive ("UCPD"), in particular the prohibition of misleading actions in Art. 6 and misleading omissions in Art. 7.
1. The GSC has developed the following conditions that must be met to use test results in a non-misleading way in advertising:
(1) The test results must be up-to-date, i.e. they are from the latest test by the testing organization;
(2) The advertised product is identical to the one that has been tested;
(3) The advertised product is not technically obsolete;
(4) The testing methods are trustworthy;
(5) The advertiser had no undue influence on the test result;
(6)
There are no special circumstances, which render using the test logo
unlawful, e.g. the test has not applied objective criteria.
The
Court combined these conditions with the standard it applies to
health-related advertising. According to the GSC’s case law,
particularly stringent requirements must be applied to the accuracy,
clarity and unambiguity of health-related advertising claims in light of
the paramount importance of health protection. This strict standard
applies not only to how the advertiser uses the test logo but also to
the test itself, in particular whether the testing methods are
trustworthy.
The requirement of accuracy, clarity and
unambiguity in health-related advertising demands that limitations or
reservations resulting from the testing procedure concerning the message
conveyed by the test logo must be clearly apparent from the logo
itself. In the context of medicinal advertising law, claims relating to
the scientific substantiation of an asserted effect must accurately
reflect any limitations identified in the underlying study; otherwise,
there is a risk of misleading consumers as to the degree of scientific
substantiation. By analogy, the judges found, a test logo is misleading
if it conveys a comprehensive health-related message while failing to
communicate clearly limitations affecting the evidential value of the
test arising from the underlying methodology.
The judges
criticized the lower court for not sufficiently assessing whether the
defendant’s test procedure complied with these strict standards. The
Higher Regional Court had not sufficiently examined the scoring
methodology - for instance, why a previous “Top Physician” award was
itself sufficient for inclusion in the research pool, what criteria
governed the pre-scoring, and how the weighting of different factors
worked. Furthermore, the logos themselves were deemed potentially
misleading because they do not disclose the significant influence of
subjective assessments from peers, the doctors themselves and patients.
Even if consumers expect some subjectivity in physician rankings, the
strict health-advertising standard requires clarity about whose
subjective views are at play.
2. The judges held that the
offering of the logos to physicians listed in the ranking constituted a
commercial practice within the meaning of Art. 2(d) UCPD. Editorial
content by a press undertaking is generally not considered a commercial
practice, if the aim is to improve or maintain a competitive position
vis-à-vis other press undertakings. However, the plaintiff did not
object to the publication of the rankings as part of the editorial
content of the defendant but to the commercial offering of the logos to
physicians listed in the ranking. This supports the promotion of the
ranked physicians and constitutes a commercial practice. This also
supports the defendant’s own business beyond mere press content because
it goes beyond improving or maintaining a competitive position vis-à-vis
other press undertakings. The defendant markets a product separate from
the press activity.
Comment 1. The Higher
Regional Court noted that the defendant also publishes recommendation
lists for lawyers, tax advisers, employers and estate agents. While the
GSC’s particularly strict standard is explicitly tied to the health
context, the general principles on misleading test logos apply across
the board.
2. Lawyer rankings follow methodologies that bear a
striking resemblance to the physician rankings of the case discussed.
They rely heavily on peer recommendations and client feedback (the
equivalent of "colleague recommendations" and "patient reviews"),
supplemented by self-reported information from the lawyers and firms
themselves. The weighting of these criteria is typically opaque, and the
resulting categories and awards - "Band 1", "Gold", "Hall of Fame",
"Global Leader" - convey unqualified quality claims not unlike “Top
Physician”.