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Price traps for consumers: New regulations make discount advertising clearer!
Find out how price information should be made clearer for consumers and what legal requirements retailers have to comply with.
Price traps for consumers: New regulations make discount advertising clearer!
There is a lot of advertising in the world of retail. Whether discount promotions, bonus bonuses or best price guarantees – retailers do everything they can to offer their goods at reasonable prices. But caution is advised, because not everything that glitters is gold. There are always discussions about the admissibility and transparency of price information. The NP Coburg reports that the Price Indication Regulation sets clear rules for how companies must communicate prices to consumers.
Dealers must state the total price including sales tax and all additional costs. In addition, they are sometimes obliged to show the basic price – i.e. the price per unit of quantity. The information must also be clear and easy to read so as not to confuse consumers. Anyone who advertises with discounts must ensure that the prices are not misleading and that correct reference prices are used. “Price swings” are viewed particularly critically, in which prices are increased briefly and then a discount is offered on top of this apparently higher price.
Price transparency and case law
A landmark ruling by the European Court of Justice (ECJ) stipulates that percentage discounts must refer to the lowest price of the last 30 days. This ensures that consumers know exactly what they are actually saving. A current case that is making waves in the media concerns Netto Marken-Discount. In an advertising campaign for a coffee product, he stated a price of 6.99 euros as the supposed reference price, while the current price was 4.44 euros. Loud Melcher's Law this is considered misleading because the reference price was not the actual price paid by consumers in the previous weeks.
The Nuremberg Higher Regional Court decided in September 2024 that the pricing was inadmissible. It turned out that Netto had already offered the coffee for 4.44 euros, so the stated price of 6.99 euros was not the correct reference price. This shows how important clear pricing information is to price transparency and how quickly retailers can get into trouble if they break the rules.
Consumer protection through competition law
The law against unfair competition (UWG) protects consumers and competitors from deception about prices. In particular, the UWG's ban on misleading information makes it clear: misleading price information can be expensive. Entrepreneurs who do not handle their price information carefully risk warnings from consumer protection organizations. It is important to ensure that all information complies with legal requirements in order to avoid legal trouble.
The constant changes and challenges in the price area require retailers to be careful in order not to mislead their customers. Ultimately, everyone benefits when clear and honest pricing information is provided.
It remains to be seen how case law will develop and what new regulations may be introduced in the future. However, it is clear that transparency in the price area is not only in the interests of consumers, but also represents an opportunity for honest retailers to position themselves successfully on the market.