BGH deliberates on promotional strategies offering discounts - Advertising Negotiations at Decreased Rates by BGH
The battle over fair advertising practices in Germany has kicked into high gear, shining a spotlight on the questionable methods used for advertising with reduced prices. In a bid to prevent businesses from deceiving consumers, the Central Office for the Suppression of Unfair Competition filed a lawsuit against errant practices - a move that was largely successful, as seen in a September 2024 case heard by the Higher Regional Court of Nuremberg. The court's ruling made it clear that any advertising that doesn't make the extent of price reductions clear is misleading and unacceptable. The supermarket chain, Netto, has since appealed the decision to the German Federal Court of Justice (BGH).
Amidst this controversy, the European Court of Justice also weighed in, ruling that any advertised price reduction must be calculated based on the lowest price of the past 30 days. This ruling solidified the need for transparency and stricter rules in advertising price reductions.
The BGH's New Rules for Transparent Advertisements
The current rules set by the BGH for advertising with reduced prices are designed to ensure transparency, fairness, and adherence to European consumer protection standards. Here's what you need to know:
- Authentic Price Comparisons: To prevent misleading advertising, the BGH mandates that the reference price - the price from which a reduction is calculated - must be a genuine previous price, reflecting a real and long-standing price at which the product was actually available before the discount.
- Clear and Honest Presentation: Advertisements必须清晰地以专业方式显示折扣价格。比较价格必须是根据有力期限内价格的比较，并且不能诱使消费者误解存在无实际存在的保存或折扣。
- Compliance with European Jurisprudence: The BGH's rules are shaped by the European Court of Justice's standards regarding unfair commercial practices. This includes compliance with principles like non-discrimination, proportionality, and appropriateness in the calculation and presentation of price reductions.
- Scrutiny for Online Marketplaces: With the rise of online shopping, the BGH is also monitoring platform-specific pricing practices, particularly those found on Amazon's marketplace. Regulators are cracking down on any pricing strategies that don't align with competition and consumer laws. Sellers are expected to comply with the rules, and platforms must ensure their pricing restrictions are transparent and legally sound to avoid violations.
- Enforcement and Impact: The September 2024 ruling reinforces the importance of genuine price comparisons and sets the stage for more stringent enforcement of advertising transparency. It underscores the ECJ's stance that false or misleading price comparisons constitute unfair commercial practices under EU law.
In essence, the BGH is enforcing a new era of advertising with reduced prices, mandating that advertisers use authentic, demonstrable previous pricing, present discounts transparently, and adhere to EU consumer protection jurisprudence. This ensures that consumers are not misled by deceptive pricing strategies and protects their best interests in both offline and online shopping environments.
- The German Federal Court of Justice (BGH) has established new rules for advertising with reduced prices, requiring authentic price comparisons that reflect real and long-standing previous prices.
- In the digital age, the BGH is also scrutinizing pricing practices on online marketplaces like Amazon, cracking down on strategies that don't comply with competition and consumer laws to ensure transparent and legally sound pricing.
