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Glossary

UWG (German/Austrian Unfair Competition Act)

The UWG ("Gesetz gegen den unlauteren Wettbewerb") regulates fair competition in Germany and Austria. For online retailers, the most relevant provision is § 5 UWG (Germany) / § 1 UWG (Austria): misleading commercial practices are prohibited.

A "misleading practice" exists when a product description contains false or ambiguous claims — about material, origin, certifications, performance, or availability. Violations can be challenged by competitors, consumer protection associations, or the Wettbewerbszentrale (German competition authority).

In the context of AI-generated product copy, this matters because hallucinations — fabricated specs, false certificates, exaggerated properties — are UWG violations regardless of whether a human or an AI wrote the text. Responsibility always sits with the deployer who publishes the listing.

A UWG cease-and-desist letter typically carries a 1,500–3,000 € amount-in-dispute plus legal fees — and is statistically far more common in DACH e-commerce than any AI Act enforcement action.