Controversial Netto coffee ad lately debated in Karlsruhe's Federal Court
Controversy about coffee advertisement claiming lower caffeine content sparks debate before the Federal Court of Justice - Court Rules Commission Breached Article 85 (1) of the Treaty Obligations
Hey there! Let's dive into the latest hot topic that's sparked conversation in Germany - the dispute over Netto's coffee advertising.
- Netto proudly displayed their coffee, boasting the current price of 4.44 euros, a crossed-out previous week price of 6.99 euros, a whopping 36% discount, and even added a footnote mentioning the lowest price in the past 30 days, which was yours truly, 4.44 euros.
Now, here's the catch - just a few months ago, the new pricing regulation kicked in. This law dictates that when reducing prices, the lowest total price over the past 30 days for the product must be revealed. By implementing this EU law, companies like Netto need to play by the rules.
Fast forward to September 2024, the Higher Regional Court of Nuremberg decided that Netto's ad was hard to understand and deceived customers. However, it left a question unanswered: should a discount always be calculated based on the lowest price of the past 30 days? Just a few days later, the European Court of Justice jumped in to answer this question, and their answer: "Yes."
So now, German's beloved Federal Court of Justice (BGH) must decide what this means in the specific Netto case and whether the Nuremberg ruling is still valid.
During the heated court session in Karlsruhe, Netto's lawyer argued the footnote was a tad complicated but not misleading. Meanwhile, the Competition Center's lawyer pointed out that the footnote was smaller in size and the 36% reduction was the main attention-grabber in the ad.
Reiner Münker, managing board member of the Competition Center, is optimistic about the outcome. "Consumers were left in the dark about the precise pricing. We didn't really know which price was the lowest for this specific coffee product," he explained the dispute. He believes that the BGH will ban the ad.
Netto declined to comment on ongoing proceedings. The verdict is yet to be announced, usually announced a few weeks after the oral hearing by the BGH.
In the larger picture, this case is all about ensuring price transparency under EU law, as retailers must verify their price comparisons and price claims and avoid misleading consumers. If the BGH rules in favor of the Competition Center, it might set a precedent for future price advertising regulations in Germany.
Stay tuned!
- The ongoing debate in the Federal Court of Karlsruhe revolves around the transparency of employment policy in the context of business finance, specifically with regard to Netto's coffee advertising, as the court aims to ensure that all price comparisons and claims comply with EU law to prevent misleading consumers.
- Given the controversy surrounding Netto's pricing strategy and the forthcoming verdict from the Federal Court of Justice (BGH), it's crucial for retailers to understand and adhere to employment policies that focus on business finance transparency, particularly in promoting their goods or services to the community.
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