No More Tricky Discounts: The Federal Court of Justice Takes on Netto Marken-Discount's Coffee Promo Ad
Advertising with price reductions are being handled by the Federal Court of Justice - Court's Initial Decision Revealed
Hey there! The Federal Court of Justice (BGH) is denouncing deceptive price discount advertising practices today, focusing on companies like Netto Marken-Discount, known as Netto to avoid confusion with the discount chain in Northern and Eastern Germany, with a pup mascot.
Netto, in a recent brochure, promoted a coffee product with a 36% slashed price. The current price (€4.44) and last week's price (€6.99) were pointed out, but in small print, the consumer found out that the product had already cost €4.44 in the past 30 days. Oopsie!
The Price Indication Ordinance sets strict rules for advertising price cuts, stipulating that companies must also disclose the lowest price at which the product was sold within the last 30 days. There's been uncertainty about how to display this so-called reference price—like whether it's enough to put it in fine print or if it needs to be bolder.
Last September, the European Court of Justice made some clarifications, stating that all price highlighting must reference the lowest price within the last 30 days, and discount percentages must be calculated on this basis. We're not sure when the BGH will pass its verdict on Netto (Case No. I ZR 183/24).
- Federal Court of Justice
- Regulations
- Netto Marken-Discount
- Dubious Advertising
- Coffee Promo
- Marketing Tactics
- European Court of Justice
According to the new guidelines, deceptive marketing strategies won't fly anymore. Retailers must use genuine price increases when comparing discounted prices, clearly communicate the terms, and avoid deceptive price comparisons. The Netto issue highlights that false savings based on artificially inflated or manipulated prices are a no-go under German law and the Court's price discount regulations.
So, folks, make sure your coffee discounts are on the up and up, or the Federal Court of Justice might come knocking! Remember, we all want our advertising practices to ensure smart consumer choices, don't we? 😃
Oh, and by the way, if you were wondering, the ruling emphasizes that truthful and transparent advertising supports the overall principle of enabling informed decisions without distortion or unfair inducement. Toodles!
The Federal Court of Justice (BGH) emphasizes the importance of truthful and transparent advertising in light of the Netto Marken-Discount coffee promo ad controversy. Retailers like Netto must adhere to the regulations set by the BGH, the European Court of Justice, and the Price Indication Ordinance, ensuring they don't use dubious marketing tactics, such as false savings based on artificially inflated or manipulated prices. Financial transparency in business, including employment policy and vocational training expenses, contributes to building a stronger community trust by promoting smart consumer choices and informed decision-making.
