Catch Those Deceptive Discounts: Federal Court of Justice Squashes Netto Marken-Discount's Footnote Trick
The Court of Federal Justice is handling prices-reduced advertisement matters. - Ruling at the Initial Trial Court: Case Details Revealed
Hey there! You might wanna sit tight as we dive into the drama surrounding Netto Marken-Discount, a grocery retailer that took things a bit too far in their advertisement game. The Federal Court of Justice (BGH) is hearing all about it, and let's just say, Netto ain't looking so hot currently.
So, here's the deal. Netto was trying to sell a coffee Product with a claimed 36% discount. Sounds great, right? But, here's the catch. The current price (€4.44) and the price from the previous week (€6.99) were stated, but to find out that the product had cost €4.44 within the last 30 days, you had to squint at the tiny footnote.
According to the law known as the Price Indication Ordinance, businesses advertising price reductions must make known the reference price, which is the price demanded for the product within the last 30 days. Long story short, the legal waters have been turbulent over just how this so-called reference price needs to be presented—footnotes or not?
Well, in September, the European Court of Justice put an end to that debate. The ruling stated that every advertising statement, like Netto's "price highlight," should always refer to the lowest price within the last 30 days, and any discount percentage figures should be calculated accordingly. Unfortunately for Netto, the exact verdict from the BGH in Karlsruhe isn't out yet (Case No. I ZR 183/24).
Here's a bit more insight on why this is a game-changer for businesses like Netto Marken-Discount:
Key requirements for advertising price discounts:- The reference price must be genuine and verifiable to protect consumers from misleading price comparisons- Advertisement materials should not mislead consumers by creating an impression of a discount when the reference price was not actually applied prior to the advertisement- Any indicated reference price should be accurate and substantiated in the advertisement
These requirements aim to shed light on deceptive practices in discount advertising and ensure transparency for consumers, thus leading to a fair market for everyone[1]. This shows just how vital it is for businesses to stand up and be honest about their promotional practices.
[1] Federal Court of Justice (BGH) Case on Netto Marken-Discount highlights considerations for truthful presentation of reference prices in price discount advertising.
In light of the Netto Marken-Discount case, community and employment policies within the business sector must emphasize truthful presentation of reference prices to adhere to the law, avoid misleading consumers, and promote a fair market. Under vocational training programs, staff should be equipped with the necessary financial acumen to comply with these regulations, ensuring accurate calculations for discount percentages and reference prices in advertising.
