EU: Incentive Promotions Infringements

The Commission is today debating a couple of key infringement cases under Article 169 relating to the German Premiums law, the Zugabeverardung and the equivalent Belgian legislation. These laws restrict the use of premiums including Air Miles and American Express (who brought the complaints). These companies offer their card-holders a bonus in the form of Air Miles, but cannot do so in Germany or Belgium. The Commission’s legal service is understood to have recommended that the cases be dropped, arguing that such incentive promotions are part of the product rather than a separate service. If the Commission follows this advice, there may be significant ramifications for all commercial communications and for the use of Article 59 in cross-border legal actions.