Retrial Decision: Essential Retail Stores Obligated to Display a Minimum Price Beyond the 'Superior Price Promise'
Retailers need to clearly disclose the original price when promoting a "best price guarantee." This was highlighted in a recent court decision by the Nuremberg Higher Regional Court. A retailer's association filed a lawsuit against a discount store for advertising a "30-day best price guarantee" and a 36% discount on a specific coffee blend. The coffee now cost 4.44 euros instead of its original price of 6.99 euros. However, customers could only find out that the coffee had been previously sold at 4.44 euros within the last 30 days through a confusing footnote.
The Nuremberg Higher Regional Court viewed this mix of pricing information as misleading. The court argued that the advertisement did not properly inform customers that the price reduction being advertised referred to the lowest price in the past 30 days. According to regulations in effect since 2022, retailers are required to provide this information to customers. The Higher Regional Court supported the initial ruling of the Amberg Regional Court and permitted an appeal to the Federal Court of Justice.
The retailer's advertising strategy was criticized by the court for not properly disclosing the discounted price's historical context. Failure to clearly communicate the previous 30-day best price as a discount could lead to penalties under the current retail regulations.
