Battling over Discounted Joe: German Court's Grueling Clash with Netto over Coffee Pricing
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Federal Court of Justice Hears Controversy Regarding Advertising of Coffee Brand - The First Instance Court determined that the Commission neglected its duties as specified in Article 85 (1) of the Treaty.
German supermarket giant Netto is finding itself embroiled in a heated dispute with the Competition Center, following its advertisement of a discounted coffee offering. The conflict has kept the Federal Court of Justice in Karlsruhe busy and tensions are running high.
Netto's advertising displayed a current selling price of €4.44, a crossed-out price of €6.99 from the previous week, and a 36% discount. In fine print, the lowest price of the past 30 days was also indicated, which coincidentally was €4.44.
The new pricing regulation, implemented around 7 months ago by the European Union (EU), requires advertisers to state the lowest total price of the previous 30 days when promoting a price reduction.
The Competition Center alleged that Netto's advertising was misleading and stated that it violated the regulation. They sought to bar Netto from advertising in such a manner. The Regional Court of Nuremberg initially ruled in favor of the Competition Center in mid-2024, citing insufficient clarity in Netto's advertisement.
However, the question of whether a discount must always be calculated based on the lowest price of the past 30 days remained unanswered. The European Court of Justice in Luxembourg subsequently provided clarity in connection with another legal dispute, announcing that such pricing regulations must indeed be followed.
With this guidance, the Federal Court of Justice in Karlsruhe now grapples with the specifics of the case. Netto's legal team argued in court that the footnote with the 30-day best price, though a tad cumbersome, was not misleading.
On the other side of the aisle, the Competition Center's legal team highlighted that the footnote with the 30-day best price was printed in much smaller font, and that the real attention-grabber was the reduction of 36%.
After the Karlsruhe hearing, Reiner Münker, managing board member of the Competition Center, expressed his optimism, stating, "Price transparency was shrouded for us as consumers. We didn't even know what the lowest price was for this specific coffee product." Münker expects the Federal Court of Justice to ultimately ban Netto's advertising.
Netto has remained tight-lipped about the ongoing proceedings, refusing to comment on the matter. A verdict from the Federal Court of Justice is forthcoming, typically issued several weeks after the oral hearing.
- Netto Marken-Discount
- Karlsruhe
- Federal Court of Justice
- EU
It's worth noting that Netto is part of the Danish retailer Salling Group and has been involved in various operational and promotional ventures in the past. However, the search results do not provide any detailed or updated information related to the current ruling or legal decision on Netto's coffee advertising or pricing practices specifically in connection with the German Federal Court of Justice or EU law. For accurate and up-to-date legal information, it would be best to consult official court records or legal databases directly related to Federal Court of Justice rulings in Karlsruhe.
- The dispute between Netto and the Competition Center revolves around transparency in employment pricing, as the European Union's new regulation requires advertisers to state the lowest price of the previous 30 days when promoting a price reduction.
- Regardless of the outcome of the court case, this conflict highlights the crucial role of finance and business practices in shaping the community's perception of employment policies, especially in the context of supermarket chains like Netto.
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