The Price Is Right – ECJ preliminary ruling on the announcement of price reductions and the definition of the ‘previous price’
ECJ, September 26, 2024 - C-330/23
Background:
In October 2022, Aldi-Süd advertised ‘Fairtrade organic bananas’ and ‘Rainforest Alliance pineapples’ as reduced, although the stated reduction was based on prices higher than the actual lowest price of the last 30 days. The Baden-Württemberg consumer association considered this to be misleading and brought an action before the Düsseldorf Regional Court.
Source images: CURIA - Documents (europa.eu)
Key points of the dispute:
The Düsseldorf Regional Court referred the question to the ECJ as to whether price reductions must always be based on the lowest price of the last 30 days (Art. 6a (2) of Directive 98/6/EC) or whether the last price shown is sufficient.
ECJ ruling:
The ECJ ruled that price reductions must be based on the ‘previous price’, i.e. the lowest price in the last 30 days. This is to prevent traders from falsely suggesting discounts by raising prices at short notice. The aim of the directive is to protect consumers from being misled and to improve price comparability.
The Maucher Jenkins team will be happy to advise you on the legally compliant display of prices in business transactions.
