ECJ on Misleading Price Discounts in Advertising Brochures

Oct 18, 2024 Benn-Ibler Rechtsanwälte

The European Court of Justice (ECJ) has been presented with a case of practical relevance concerning the advertising of discounts and price reductions.

A German discounter had advertised in its flyers percentages on price savings as well as ‘price highlights’, for example, that bananas would cost only EUR 1.29 instead of EUR 1.69. However, the lowest price for bananas in the last 30 days had been EUR 1.29 as well. The discounted price of a pineapple was advertised as only EUR 1.49 instead of EUR 1.69. However, the discounted price for pineapples was higher than the lowest price within the last 30 days, which had been EUR 1.39.

The German consumer association considered that such advertising was detrimental to the interests of consumers as well as unfair. It therefore brought an action before the referring local court, the Landgericht Düsseldorf (Germany), seeking an order to make discounters calculate special price reductions on the basis of the lowest price.

The Landgericht Düsseldorf then referred the following question to the ECJ for a preliminary ruling:

Is Article 6a(1) and (2) of [Directive 98/6] to be interpreted as meaning that a percentage stated in the announcement of a price reduction may be based only to the prior price within the meaning of Article 6a(2) of [Directive 98/6]?

In order to determine the meaning and scope of a provision of EU law, it is necessary to take into account not only its wording but, in particular, its specific objectives. The purpose of Directive 98/6 is to make it easier for consumers to compare prices. It also aims to ensure that all consumers in the internal market receive standardised and transparent pricing information. A price must be clearly visible and easily legible so that this information is accurate, transparent, and unambiguous.

The ECJ concluded that a price reduction for a product announced in the form of a percentage or an advertising message must be determined on the basis of the lowest price within the last 30 days.

ECJ C-330/23 (26 September 2024)