Strict regulations: discount, bonus, best price – how dealers can advertise with it

When shopping, the price is often the striking argument when customers have the selection between different products. No wonder that many companies advertise their goods with discount campaigns, bonus premiums or best price guarantees. But if you want to lure with price reductions, you have to consider a lot. The Federal Court of Justice (BGH) in Karlsruhe is also dealing with the topic.

Which price is advertised?

The so -called pricing regulation regulates how companies have to state the prices of their goods or services to consumers. For example, it says that the total price must always be specified – the amount, the customer, including sales tax and other price components per goods or service.

In addition, retailers are partly obliged to specify the basic price. That is the price of ever: per kilo, liter, cubic meter, meter or square meter. The requirement applies to everything that is offered in ready -made packaging, open packaging or sales units without a wrap by weight, volume, length or area – such as food, potting soil or fabrics. The price must be unequivocally, clearly recognizable and legible.

What applies to price discounts?

In the case of advertising with price, it is generally the case that consumers may not be misled, explains lawyer Martin Jaschinski from the Berlin law firm JBB lawyers. This is the case, for example, if the false original prices are compared that were never as high as claimed. “It doesn’t even happen that rarely,” says the advertising expert.

Another advertising strategy is the price swing in which the company raises the price for a short time, in order to then advertise with a supposed discount. Competition law also sets close barriers: If you only ask for the higher price for an “inappropriate short time”, you should not advertise with a price removal afterwards, says Jaschinski. But how do you define such a short time? And how can competitors or consumer advocates track?

What price is compared?

In order to counteract these practical problems, the European Union (EU) stated in a pricing guideline: With a price reduction, the lowest price that was requested in a period of 30 days before this price reduction – the so -called reference price must always be specified. In Germany, this European directive was implemented in the Price Issue Ordinance.

How must this price be specified?

It was initially controversial how and where this 30-day reference price had to be specified, says specialist Jaschinski. In September, the European Court of Justice then clarified: The Luxembourg judges decided that percentage discounts or advertising statements such as “price-highlight” always have to refer to the lowest price of the past 30 days. So it is not enough to name the reference price in a footnote, but otherwise refer to a higher price.

What is it about in Karlsruhe?

The BGH is now negotiating a complaint from the competitive center against the food retailer Netto Marken -Discount based in Bavaria – not to be confused with the discounter of the same name, especially in the north and east of Germany with a dog on the logo. The discounter had advertised for a coffee product by giving the price of the previous week (6.99 euros), the current price (4.44 euros) and the percentage discount (-36 percent). The reference price was also found in a footnote. At 4.44 euros, it was as high as the supposedly reduced current price.

The competitive center considers advertising misleading and sees a violation of the pricing regulation. The lawsuit was successful in the lower courts. Most recently, the Nuremberg Higher Regional Court decided that in the event of a dispute, the average consumer could hardly recognize the reference price. He is left unclear about the scope of the discount. The judgment was made two days before the groundbreaking decision of the ECJ.

Which alternatives use companies?

As a result of the ECJ judgment, a little less often advertised with price reductions and more with non-binding retail price (RRP), says Jaschinski. In advertising, it is not an earlier price for comparison, but the price that the manufacturer recommends dealers. Because the price regulation does not apply. “However, it is often not so easy for consumers to see whether they apply as a UVP or real price removal,” says the Berlin lawyer. And: Often the RRP are not seriously calculated and were far above the actual sales prices. “There will still be a lot of quarrel,” Jaschinski is certain.