Cease-and-Desist Undertaking

A cease-and-desist undertaking is not merely a short-term response to a warning letter. It can create a continuing contractual obligation backed by penalties.

Back to Competition Law.

Scope of the promise

The wording should address the conduct that legally creates a risk of repetition without unnecessarily extending to unrelated behaviour. The practical ability to comply across websites, shops, advertising systems and staff workflows should be considered.

Contractual penalties

Penalty clauses can create substantial future exposure. The mechanism, amount or method of determination should be assessed together with the likelihood of accidental repeat conduct.

Modification rather than automatic signature

A requested text is not automatically the only possible solution. Depending on the merits and strategy, a modified undertaking or a defence of the claim may be appropriate.

Preparing a competition-law review

Please preserve the complete advertisement, shop page or marketplace listing, including screenshots with date, URL and surrounding context. Any cease-and-desist correspondence, proposed undertaking, invoices and a concise chronology are also useful. For advertising claims, documents supporting the factual basis of the statement can be as important as the wording itself.

A binding undertaking can remain relevant long after the original dispute. Its wording should be reviewed before signature.