Discount campaigns, price reductions and sales are an attractive method for retailers to lure customers into their stores.
However, there are numerous legal requirements for discount campaigns and pricing.
In a recent decision, the European Court of Justice (ECJ, judgment of 26.09.2024, ref. C-330/23) classified a price reduction clause of the discounter Aldi-Süd as misleading.
What happened?
In an advertising brochure, a "price highlight" of €1.49 was stated for fruit, with the old price of €1.69 crossed out next to it.
Below the price was the small print :: ''Last sale price, lowest price in the last 30 days: €1.39''
The price of the last 30 days was therefore lower than the advertised "price highlight".
The reference in the small print was made because for around two years now, retailers in the EU, who are obliged to indicate a total price, have had to indicate the lowest price of the last 30 days as a reference to consumers for every price reduction for a product (Section 11 PAngV).
How was the decision made?
The plaintiff, Verbraucherzentrale Baden-Württemberg, argued that due to this regulation, the advertised price reductions should refer to the lowest price and not to the price immediately before the start of the offer. Otherwise, the "crossed out" price could have been increased shortly beforehand only so that a subsequent price reduction could be advertised. This would be a deception.
The ECJ largely agreed with the argumentation.
The Düsseldorf Regional Court (judgment of 31.10.2024, Ref. 38 O 182/22), which had referred the matter to the ECJ, directly implemented the legal opinion in a judgment.
Conclusion
This decision shows that advertising campaigns and the pricing of products can be tricky under competition law. Other designs and formulations are also frequently the basis of competition law disputes.
If you have any questions about your pricing or are concerned that one of your competitors is advertising unfairly, please do not hesitate to contact us.
