Federal Court Rules Against Misleading Packaging Both Online and Offline
Consumers often face disappointment due to packaging that appears to contain more goods than it actually does. The highest court in Germany, the Federal Court of Justice (BGH), has taken action against these so-called bulging packages.
The court in Karlsruhe has ruled that if a product packaging is only about two-thirds filled, it is an illegal bulging package, regardless of whether it is sold in a store or online. According to the presiding judge, Thomas Koch, a packaging that does not match its actual content misleads consumers no matter the sales channel.
In this case, L'Oreal, a cosmetics and body care company, advertised a men's shampoo on their website alongside an image of a plastic tube with a screw cap. The issue was that the tube only contained shampoo up to the end of the visible part, while the image suggested it was almost fully filled. The Consumer Center Baden-Württemberg claimed this advertising was misleading.
Law in Germany strictly regulates packaging. The Measurement and Calibration Act states that misleading packaging cannot be manufactured or marketed. Previous rulings considered a packaging a bulging package when it contained less than two-thirds of the filling.
Lower courts were initially unsuccessful with the case. The Higher Regional Court (OLG) Düsseldorf deemed the packaging only about two-thirds full and a bulging package in a store context. However, they argued that online consumers couldn't see the packaging's real size, which made no difference since the amount shown was correct per milliliter. The BGH disagreed. According to Koch during the April hearing, the Karlsruhe Senate would likely not accept this assessment.
Therefore, the judgment from the highest German civil court also changed. The BGH overturned the previous decisions and instructed L'Oreal to stop this behavior. A company spokesperson said they respected the BGH's decision and were waiting for the final judgment, including the grounds for the decision. "The Consumer Center is suing over a packaging we removed from the market more than four years ago and haven't sold in this form for more than two years," they added.
Germany is not the only country with packaging regulations. The Unfair Commercial Practices Directive in the EU bans misleading omissions, actions, and statements, including misleading packaging. The EU Packaging and Packaging Waste Directive requires packaging to be designed and manufactured so it can be reused, recycled, or recovered.
The decision of the Karlsruhe Senate, according to the managing director of the Consumer Center Baden-Württemberg, Cornelia Tausch, will encourage consumers. She expressed hope that the position of consumers would be further strengthened by the new EU packaging law, which aims to reduce packaging waste by at least 15% in the EU by 2040. The new regulations, which minimized packaging weight and volume for manufacturers, were also confirmed by the European Parliament.
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- Despite the misleading packaging being an issue in both physical stores and online platforms, the Federal Court of Justice (BGH) in Germany has made it clear that deceptive packaging is illegal, regardless of the sales channel.
- L'Oréal S.A., a prominent cosmetics and body care company, found itself in hot water due to deceptive packaging of a men's shampoo on their website, as the product packaging only contained shampoo up to the end of the visible part, while the image suggested it was almost fully filled.
- The ruling by the Federal Court of Justice (BGH) is significant for companies, as it will now be held accountable for providing accurate product packaging information both online and offline, ensuring that consumers are not misled.
- According to the managing director of the Consumer Center Baden-Württemberg, Cornelia Tausch, the court's decision to prohibit deceptive packaging will empower consumers and encourage them to advocate for stronger regulations in the EU.
- The Measurement and Calibration Act in Germany strictly regulates packaging, prohibiting the manufacturing and marketing of misleading packaging, including bulging packages, which contain less than two-thirds of the filling.
- Companies operating in the EU must abide by the Unfair Commercial Practices Directive, which bans misleading omissions, actions, and statements, including misleading packaging.
- Under the EU Packaging and Packaging Waste Directive, packaging must be designed and manufactured in a way that allows for easy reuse, recycling, or recovery, reducing waste and promoting sustainability.
- In order to further reduce packaging waste in the EU, the EU has proposed new regulations that aim to minimize packaging weight and volume for manufacturers, in line with the EU's goal of reducing packaging waste by at least 15% by 2040.
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