Grocery Giant Faces Court Over Deceptive Price Advertising
Court Holds Hearing on Contested Price Advertisements (Regarding BGH) - Advertising Negotiations for Discounted Rates by BGH
In a major twist, Netto, a well-known grocery chain, found itself in hot water due to its advertising methods. The Central Office for the Prevention of Unfair Competition labeled the advertisements deceptive and filed a lawsuit seeking an injunction.
The case was heard by the Higher Regional Court of Nuremberg, and the office largely prevailed. In 2024, the court concluded that the advertisements left consumers doubtful about the actual extent of the price reduction, making them misleading. Netto appealed the decision to the Federal Court of Justice (BGH).
In September of the same year, the European Court of Justice also weighed in, asserting that any advertised price reduction should be calculated based on the lowest price over the past 30 days. This means that retailers cannot advertise a reduced price unless it's truly lower than the lowest price offered within this timeframe.
The European Court of Justice's ruling could significantly impact price advertising across Europe, including in Germany. If the BGH, Germany's highest federal court for civil and criminal matters, upholds the decision, retailers will be required to maintain proper records of previous prices to justify their claims of offering reduced prices.
Deviations from this standard could potentially be deemed illegal or misleading under both German and European consumer protection laws. This move toward transparent, fair pricing communication aims to protect consumers in Germany.
It's worth noting that, under the current ruling, the BGH aligns with the European Court of Justice’s interpretation to prevent misleading advertising. Accurate record-keeping by retailers is key to upholding these standards.
While specific cases addressing price advertising reduction rules in Germany post-ECJ ruling were not found in recent search results, the consensus suggests that German courts, including the BGH, follow the ECJ’s interpretation closely. This ensures that price reductions in advertising are not misleading to consumers.
Stay tuned for updates on this ongoing case and the impact it may have on future price advertising practices in Germany.
The Grocery Giant, Netto, is currently in an appeal process with BGH, Germany's highest court, over deceptive price advertising, following the European Court of Justice's ruling that any price reduction should be based on the lowest price over the past 30 days. This decision could significantly influence business practices and finance matters related to price advertising in Germany, as retailers will need to maintain accurate records of previous prices to justify their claims of reduced prices to uphold consumer protection laws.
