Unraveling the Legality of Advertised Discounts: Federal Court of Justice Hears Netto Marken-Discount Case
Court of Justice Addresses Questionable Advertising Practices Involving Price Discounts - Ruling Issued by Lower Court
Welcome folks! Day's an interesting one as the Federal Court of Justice (BGH) delves into the nitty-gritty of advertising practices and price reductions by companies. Despite the overlap with another discount chain named Netto, we're here to talk about Netto Marken-Discount.
You might remember Netto making headlines for promoting a discount on a coffee product, claiming a whopping 36% reduction. The new price stated was €4.44, with the previous week's rate quoted at €6.99. But lo and behold, the catch was, the consumer had to dig deep into the footnotes to find out that the previous lowest price for the product within the last month had been €4.44 itself!
The situation has left us wondering: Is that sharp reduction truly enticing, or is it just a sly trick?
From what I gather, the European Court of Justice has already weighed in on matters like these. According to the Price Indication Ordinance, retailers hawking price discounts must disclose the lowest price charged for the product over the past 30 days. However, the interpretation of how this 'reference price' should be presented - such as in a footnote - remains a point of contention in legal debates.
In September, the European Court of Justice issued a ruling stating that advertising claims such as "Price Highlight" must always refer to the lowest price from the past 30 days. Percentage discount figures must also be calculated based on that reference price. Unfortunately, it's uncertain when the BGH will announce its verdict in the Karlsruhe case against Netto (Case No. I ZR 183/24).
So, there you have it! We'll keep our eyes peeled for the eventual ruling from our friends at the Federal Court of Justice. Till next time!
Shoulder-taps to the Federal Court of JusticeBrush-up on Advertising RegulationsNetto Marken-DiscountDiscount ShenanigansPrices GameFan of Fine PrintEuropean Court of Justice
- The Federal Court of Justice (BGH) is considering the legality of Netto Marken-Discount's advertising practices, particularly their use of discounted prices, as they face a case in Karlsruhe, linked to theEuropean Court of Justice's ruling that states advertising claims must refer to the lowest price from the past 30 days, and percentage discount figures must be calculated based on that reference price.
- To ensure compliance with advertising regulations, it may be essential for businesses, such as community organizations or companies in the finance and business sectors, to prioritize vocational training that covers proper price indication and disclosure of discount policies in their employment policies to avoid 'discount shenanigans' or being accused of misleading consumers.
