Defamation by Competitors

Sudden Loss of Revenue Due to Malicious False Statements?

The company Freising Kühlmittel generated most of its revenue from refurbished cooling equipment. The company’s prices for used goods naturally undercut the competition’s prices for new equipment, and Freising Kühlmittel GmbH enjoyed strong sales. But around mid-2015, a sudden decline set in, several customers dropped out, and the acquisition of new customers noticeably stalled. The managing director and lead client of Aaden Detectives Munich, Mr. Bader, naturally tried to determine the cause of this threatening situation himself. He spoke with people in the industry and with his customers and learned of rumors that two of his competitors in the sale of cooling equipment, namely sellers of new goods, were systematically speaking negatively about the quality of the refurbished Freising products at trade fairs, during customer meetings, and on other occasions.

 

This form of unfair competition could, of course, not simply be tolerated by Mr. Bader at his company, so he researched online what could be done about it – the solution was Aaden Coporate Detective Agency Munich.

Developing a Detective Investigation Strategy

Together with the managing director of Freising Kühlmittel GmbH, our Munich detectives developed a plan to verify his suspicion and, if confirmed, to prove the competition violations. Our specialists designed the investigation strategy on two fronts: first, they would construct an elaborate cover story by which two of our private detectives from Munich could introduce themselves to the suspected companies as interested buyers of cooling equipment. On that occasion, they would discreetly steer the conversation toward refurbished used goods and – should the Freising GmbH not already have been mentioned on its own – name the client company explicitly. The second approach involved a visit to a trade fair for cooling equipment by two of our investigators. There, the detectives from Munich would again pose as interested parties (though with a simpler cover) and receive personal consultations at the respective exhibition stand of each company.

 

Since the assignment had just been given to Aaden Detective Agency Munich and a trade fair was imminent at which both target companies would have stands, our investigators used the “trade fair” approach first. Two of our private detectives were thoroughly briefed by Mr. Bader on the basics of cooling technology, the most common cooling devices, and the structures of the industry. They also carried out their own preliminary research on the target companies, including any past competition violations, cease-and-desist letters, and poor reputations, but only ordinary minor matters came to light.

Verification of Suspicion at a Trade Fair

Thus prepared, the detectives from Munich went to the trade fair and visited the stand of the first company, let us call it Rosenheim Kühlmittel GmbH. They were welcomed very warmly, each received a coffee, and after a short wait a customer advisor personally attended to their request. He explained the advantages and disadvantages of various cooling solutions and devices and supported his presentation with fact sheets, technical drawings, and model photographs. After some time, the detectives said that they had not expected such prices and asked how the company handled used equipment. The advisor from Rosenheim Kühlmittel said that they did not offer any, and generally one had to ensure that the goods were properly maintained or professionally refurbished. The investigators of Aaden Detective Agency Munich then repeatedly tried to steer the conversation toward specific suppliers of used goods and, ultimately, quite explicitly toward Freising Kühlmittel GmbH. The customer advisor, however, consistently made it clear that he knew too little about that area to give a well-founded opinion. The detectives thanked him and took their leave.

 

After that, they presented the same cover story at the stand of the second target company. There, they were initially asked to return later, as all advisors were currently in conversation. A specific appointment was arranged for about an hour later. When the consultation finally took place, the employee explained some of the machines directly at the exhibit. He was courteous and professional, and Freising Kühlmittel GmbH was not actively mentioned. The economic detectives from Munich therefore steered the conversation toward used equipment, but this customer advisor also stated that he was not sufficiently familiar with that field. He did know the company Freising Kühlmittel, but he had nothing either good or bad to say about it. After this meeting, Aaden Commercial Detective Agency Munich ended the trade fair investigation route and turned to the second variant.

Personal Appearance by the Detectives at the Target Company

Implementing investigation tactic B required considerable preparation, because in order to present a credible cover story as an interested buyer of cooling equipment, one that would allow our private detectives from Munich to discuss the topic in depth without arousing suspicion, the investigative team had to build a functional and verifiable scenario. Developing this took about three weeks. In the end, two other investigators than the trade fair visitors visited the target companies by appointment.

 

At Rosenheim Kühlmittel, the detectives were greeted personally by the managing director. They immediately stated that they were looking for a partner to supply cooling equipment, but were still undecided between buying new equipment and purchasing used goods. The managing director was now to convince them that he was the right man for the investigators’ fictitious project. He first highlighted the advantages of his company – which took about thirty minutes. He then moved on to the advantages of new goods over used equipment and quickly made the claim that there were a number of disreputable providers on the market for resold goods.

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Our economic detectives from Munich naturally took this opening immediately and pinned the conversation down on the issue of “black sheep.” The managing director named two examples known to him in which “supposedly refurbished” goods had “given up the ghost” after a short time. Which supplier had that been, asked Aaden Detectives Munich. Freising Kühlmittel GmbH, was the answer! According to him, the company had a criminal managing director who had been in prison for various frauds and relied on incompetent labor from Eastern Europe as well as improperly sourced replacement parts from Southeast Asia. After refurbishment, these devices were worth less than before – and Freising Kühlmittel GmbH was by no means the only company operating in this way. This market was so dubious and opaque that one would be better off keeping one’s hands off it.

Claims by the Competitor Are Baseless

After the appointment at Rosenheim Kühlmittel GmbH, Aaden Detective Agency Munich carefully checked the managing director’s statements before informing Mr. Bader of the findings. It turned out to be false that Mr. Bader had ever been imprisoned, and he did not employ an unusually high proportion of foreign workers.

 

The appointment at the second target company was uneventful, and no negative remarks were made about the clients of our private detectives from Munich. According to the final findings, the perpetrator field was thus limited to one competitor. Whether there was a specific reason why Freising Kühlmittel GmbH in particular was targeted by the reputational attacks was not determined during the investigation. Afterward, Mr. Bader initiated legal cease-and-desist demands and a claim for damages.

Notice

Note: For reasons of discretion and data protection, the locations and certain personal details have been altered without changing the substance of the actual events.

Aaden Detective Agency Munich

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D-80798 München | Munich

Tel.: +49 89 7007 4378-0

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E-Mail: info@aaden-detektive-muenchen.de

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CEO: Maya Grünschloß, PhD

Register Court: Amtsgericht Köln

Registration Number: HRB 83824