Best Sales, a Dutch company trading as Best Of and Oliveal, sent unsolicited mailings to UK residents offering household goods and health remedies.
The OFT said that the mailings were misleading because they appeared to notify UK consumers of a large prize win, typically £5,900 or £10,000. It also considered that the mailings implied that to receive a larger prize, or to receive the prize faster, the consumer had to buy something from the accompanying catalogue.
The OFT initiated proceedings against Best Sales in the commercial court in Breda in 2006 after it received consumer complaints. The court ruled in its favour and granted the injunction on July 9.
The presiding judges said in their ruling: "It is clear that the content and layout of the mailings at issue have been designed with the intention of convincing the consumer that he will absolutely win the amount on the cheque stated in the mailing."
They also said that the numerous misleading statements made in the mail shots were "intended to give a false representation of the facts with the intention of persuading the consumer to place an order for the products in the catalogue".
This is the first court order that the OFT has gained in the Netherlands and only the second ever cross border injunction that it has sought.
The injunction prevents Best Sales from continuing to send misleading mailings to UK consumers. Failure to comply with it will result in a €1m (£790,000) fine for each offending mailing sent.
Best Sales is also required to place an agreed statement in two national UK newspapers apologising for having misled UK consumers.
Mike Haley, OFT director of consumer protection, said: "The judgment sends a clear message to direct mail publishers across Europe that such misleading prize draw advertising is unacceptable.
"The case also demonstrates that the OFT will not hesitate to pursue those responsible either directly in the European courts or through our European enforcement partners."