Legal Compliance on Amazon: Where the Liability Actually Sits — with RA Thomas Engels

Navigating the German legal landscape as an Amazon seller often feels like walking through a minefield where the triggers are composed of acronyms: ProdSG, ElektroG, BattG, and the ever-present threat of the Abmahnung. In this session of AMASessions, host Christian Kelm sits down with Rechtsanwalt Thomas Engels, a leading legal expert for e-commerce in Germany, to deconstruct where liability sits, how the regulatory environment is shifting under the new General Product Safety Regulation (GPSR), and what specific technical hurdles sellers must clear to remain compliant on the marketplace.

The Impressum and TMG: The Foundation of Transparency

Under the German Telemedia Act (Telemediengesetz - TMG), every commercial entity must provide an Impressum (Legal Notice) that is easily recognizable, directly accessible, and constantly available. For Amazon sellers, this requirement is technically fulfilled through the Seller Profile page, provided the data is complete and accurate. However, as Thomas Engels points out, the risk profile changes the moment a seller expands beyond the standard listing.

If you operate a Brand Store on Amazon or your own independent shopify instance, the link to the Impressum must be reachable from every single page. A common mistake is burying the legal notice in a sub-menu that requires more than two clicks to reach. Furthermore, the Impressum must include a physical address (no P.O. boxes), a direct contact method (phone and email), and the Value Added Tax identification number (USt-IdNr.). For companies listed in the commercial register, the register court and the HRB/HRA number are non-negotiable.

Widerrufsbelehrung and the EU 14-Day Return Right

The Widerrufsbelehrung (Cancellation Policy) is one of the most frequent targets for legal warnings (Abmahnungen). In the DACH market, European law mandates a 14-day window during which a consumer can return goods without stating a reason. For Amazon sellers, the challenge lies in the synchronization between Amazon’s own "A-to-z" guarantees and the legally mandated German text.

Engels emphasizes that for the German marketplace, the cancellation policy must be provided in German. Even if you are an international seller shipping from the UK or US, if you list on Amazon.de, your legal texts must meet local language requirements. Failure to provide a correct Widerrufsbelehrung doesn't just invite a warning; it can legally extend the customer’s right of return to up to 12 months and 14 days, creating a massive financial liability for the seller.

Product Safety Law (ProdSG) and Technical Documentation

The Produktsicherheitsgesetz (ProdSG) is the backbone of hardware compliance in Germany. Under this law, a product must not endanger the health or safety of users when used as intended. Sellers often confuse the CE mark with a quality seal; in reality, the CE mark is a self-declaration by the manufacturer (or importer) that the product meets all applicable EU directives.

To be compliant, sellers must maintain a technical dossier for 10 years after the last unit is placed on the market. This includes the EU Declaration of Conformity and, where applicable, test reports from notified bodies. Furthermore, the ProdSG requires that the product or its packaging clearly identifies the manufacturer or, if the manufacturer is outside the EEA, an authorized representative or importer within the EU. This "Responsible Person" requirement is a central pillar of the upcoming GPSR enforcement.

Packaging Law (VerpackG) and LUCID Registration

Since 2019, the Verpackungsgesetz has enforced strict "polluter pays" principles for shipping and product packaging. Every seller, regardless of size, must register with the Central Agency Packaging Register (Foundation Zentrale Stelle Verpackungsregister – ZSVR) via the LUCID database.

The process is twofold: first, you register your company to receive a LUCID number. Second, you must enter into a contract with a "dual system" (such as Interseroh or Der Grüne Punkt) to pay "licensing fees" based on the estimated weight of the paper, plastic, and glass you put into circulation. These fees vary but typically start at around €25–€50 per year for small volumes. Amazon now automatically checks for valid LUCID numbers; without one, your listings will be blocked. Engels warns that even if you use FBA, you are responsible for the licensing of the "secondary packaging" (shipping boxes) unless Amazon explicitly takes on that liability, which they rarely do for the product's primary packaging.

ElektroG and BattG: Handling Electronics and Batteries

For anyone selling electronics, the Elektrogesetz (implementing the WEEE Directive) is the most capital-intensive hurdle. Sellers must register with the Stiftung Elektro-Altgeräte Register (EAR). The registration process can take 8 to 12 weeks, and the EAR number must be displayed in your Amazon listings and on your invoices.

Similarly, the Batteriegesetz (BattG) applies if your product contains batteries or is supplied with them. This requires another registration and a commitment to take back spent batteries. In Germany, failure to display an EAR number is a "per se" violation that competitors can use to trigger an Abmahnung. The costs here are not just the registration fees, but the ongoing "insolvency-safe guarantee" requirements that ensure electronic waste is handled even if the company goes bankrupt.

Textile Labeling and the TextilKennzG

The Textile Labeling Act (Textilkennzeichnungsgesetz) is deceptively simple but practically difficult. You must list the fiber composition (e.g., "95% Cotton, 5% Elastane") using specific authorized terms. You cannot use creative marketing terms like "Softest Wool" in the mandatory labeling section; you must use the terms defined in the EU Textile Labeling Regulation.

One common pitfall discussed by Thomas Engels is the "Country of Origin" requirement and the language requirement. Labels must be in the language of the country where the product is sold. For Amazon.de, this means "Baumwolle" instead of "Cotton." If a multi-pack of socks is sold, the labeling must be on the packaging or the product itself in a way that is clearly visible to the consumer before the purchase.

Food Safety, LMIV, and Health Claims

Selling food or supplements on Amazon.de brings the Lebensmittel-Informationsverordnung (LMIV) into play. Every mandatory piece of information that appears on the physical label—ingredients, allergens, nutritional values, and expiration dates—must also be visible in the Amazon product images or the bullet points.

The "Health Claims Regulation" (VO (EC) No. 1924/2006) is even stricter. You cannot claim a product "heals" or "cures" unless the claim is specifically authorized by the European Food Safety Authority (EFSA). Phrases as simple as "detox" or "slimming" are frequently challenged in German courts. Engels advises sellers to stick strictly to the authorized wording in the EU Register of Health Claims to avoid expensive litigation from consumer protection groups.

The "Abmahnung" Industry and Cost Structures

In Germany, legal compliance is enforced not just by the state, but by competitors and trade associations through the Abmahnung (cease-and-desist letter). A typical warning letter for a minor violation—like a missing link to the EU ODR platform or a faulty Impressum—costs between €500 and €1,200 in initial legal fees.

However, the real danger is the Unterlassungserklärung (Cease and Desist Declaration). By signing this, you agree to pay a contractual penalty (often €2,500 to €5,000) for every future violation. If your Amazon software glitches and removes your Impressum again six months later, you could be liable for tens of thousands of EUR. Thomas Engels notes that many sellers treat these as "taxes" on doing business, but the cumulative risk can bankrupt a small brand if they don't have a robust compliance workflow.

The Digital Services Act and the GPSR 2024 Shift

The legal landscape is currently shifting underneath Amazon sellers with the full implementation of the General Product Safety Regulation (GPSR) in December 2024. This regulation closes many of the loopholes previously used by non-EU sellers.

Under the GPSR, Amazon is no longer just a "platform"; in many cases, if there is no other responsible party in the EU, the fulfillment service provider (Amazon) or the importer takes on full liability for product safety. For sellers, this means Amazon will become significantly more aggressive in demanding "Responsible Person" documentation, safety images, and localized warning labels. Christian Kelm notes that this will likely lead to a "cleaning" of the marketplace, where sellers who cannot prove compliance will be offboarded in 2025.

Legal Protection Insurance (Rechtsschutz) for Sellers

Given the high frequency of Abmahnungen in the German market, legal protection insurance is essential. However, Engels clarifies that not all insurance is created equal. A standard "business liability" insurance (Betriebshaftpflicht) covers damages caused by your product (e.g., a battery explodes), but it does not cover the legal costs of defending against a competitor’s warning letter regarding a faulty Impressum.

Sellers should look for specific Internet-Rechtsschutz or E-Commerce-Rechtsschutz policies. These policies often include a "preventative" element, such as providing updated legal texts (Impressum, AGB, Widerrufsbelehrung) that are legally insured. If the insured text is found to be faulty and leads to a warning, the insurance provider covers the costs. For a mid-sized Amazon seller, these policies provide the peace of mind necessary to scale without the constant fear of a €10,000 penalty.

This article is based on a structured conversation between Christian Kelm and RA Thomas Engels during an AMASessions live stream. To dive deeper into the nuances of German e-commerce law and hear the specific case studies discussed, watch the full session on the AMALYZE YouTube channel.