Federal Court of Justice examines net advertising: is the discounter deceptive?

Federal Court of Justice examines net advertising: is the discounter deceptive?

At the heart of the legal dispute over misleading advertising is the food discounter Netto Marken-Discount. The Federal Court of Justice (BGH) Karlsruhe is currently examining a lawsuit from the competition center, which is targeting Netto because of a coffee advertisement. This is suspected of violating the price information regulation, as the lowest price of the last 30 days must be stated for discount campaigns in order to ensure a fair price comparison.

In an advertisement, Netto advertised a coffee with a current price of 4.44 euros, which was previously advertised as 6.99 euros. However, in a footnote, the discounter pointed out that the price in the last 30 days was also 4.44 euros. This approach was viewed as misleading by the lower courts and the competition center's complaint has already been upheld.

Clarity about price discounts required

In today's hearing, which began at 10:00 a.m., the BGH discussed how companies should properly deal with price discounts. The case is particularly explosive because it takes place in the context of a decision by the European Court of Justice (ECJ) moved, who determined that statements such as “price highlight” must refer to the lowest price of the last 30 days. This significantly strengthens the comparability of prices for consumers.

The lawsuit does not concern the new Netto, which operates in northern and eastern Germany, but rather the Netto Marken-Discount based in Bavaria. Reiner Münker, managing director of the competition headquarters, is optimistic about the outcome of the proceedings. It is clear to experts that the future ruling could have far-reaching effects on retail pricing.

Further legal developments in competition

But that is not the only price discussion before the BGH! The court recently ruled that bottle deposits can be shown separately from product prices, creating more transparency for consumers. This ruling followed a years-long legal dispute between the Association of Social Competition e.V. and a trading market, which once again fueled the discussion about transparent price information. The price information regulation, which requires clear identification, is becoming increasingly central. According to the LHR The separate indication of deposit amounts promotes traceability and transparency when purchasing and could therefore also have an influence on the Federal Court of Justice's decision in the net matter.

It is still uncertain when the Federal Court of Justice will make its ruling in the Netto advertising case. The fact is, however, that this lawsuit could be groundbreaking not only for the discounter, but for the entire retail sector - a signal that can encourage companies to rethink their advertising and pricing strategies.