Discount Store Price Transparency: Landgericht Düsseldorf Stands with Consumers
Businesses Under Scrutiny for Misleading Price Advertisements: Phantom Discounts Challenged in Court - Retailers Face Legal Challenge Over Deceptive Pricing Techniques
Discount stores have been put on notice by the Landgericht Düsseldorf after a ruling in a lawsuit between Aldi Süd and the Consumer Protection Center Baden-Württemberg (Case No.: 38 O 284/24). As reported in the "Food newspaper," this decision could lead to a crackdown on misleading discount advertising.
In the case, Aldi Süd was accused of deceptive price reduction advertising for various goods, particularly chips. According to the Price Labeling Act, enacted in 2022, advertisements must include the lowest price of the past 30 days, in addition to any percentage price reduction.
The Consumer Protection Center Baden-Württemberg highlighted how Aldi's advertising techniques were obscuring the actual depth of the advertised discounts. By merely advertising reduced prices relative to a "Suggested Retail Price" (SRP) with no mention of the preceding 30-day lowest price, the retailer's tactics were deemed misguided.
Although the ruling is not yet final, Aldi Süd reserves the right to appeal to the Oberlandesgericht Düsseldorf.
Ending Excessive Prices and False Discounts
Aldi Süd argued that mere SRP comparison without the 30-day lowest price disclosure was acceptable. However, the court's ruling on Friday shines light on the need for retailers to be transparent about their pricing practices to safeguard consumers from deceptive advertising.
This decision is a significant stride in the fight against "moon prices," exaggerated SRP indications that artificially heighten the impact of discounts, as implied in Aldi's advertising tactics. The Price Labeling Act aims to eliminate such predatory pricing behavior.
- Consumer Protection
- Discount Stores
- Transparency
- Price Labeling Act
- Regional Court Düsseldorf
- Justice
[1] - Following the initial court ruling, the final decision will depend on the outcome of any potential appeal to the Oberlandesgericht Düsseldorf.
- The final verdict regarding Aldi Süd's price reduction advertising practices will be determined by the Oberlandesgericht Düsseldorf, following the initial ruling by the Regional Court Düsseldorf.
- In accordance with the Price Labeling Act, retailers, including discount stores like Aldi Süd, must disclose the lowest price from the past 30 days in their advertisements to prevent deceptive pricing practices and promote transparency.
- The Price Labeling Act also targets the elimination of "moon prices" and excessive SRP indications, ensuring that consumers are not subjected to false discounts or predatory pricing behavior.
