In its ruling of October 9, 2025 (case no. I ZR 183/24), the Federal Court of Justice (BGH) clarified that advertising with price discounts is only permissible if the discount refers to the lowest price for the product in the past 30 days, i.e. the so-called reference price.
Misleading discount advertising
The food retailer “Netto” had advertised a coffee product in its advertising brochure that had been reduced by 36%. Instead of the original price of €6.99, the coffee was now only supposed to cost €4.44. Behind the original price, a small footnote at the bottom of the page stated that the €6.99 was the “best price in the last 30 days to date” – “except” for the coffee product advertised at €4.44 in the brochure. Although this cost €6.99 the previous week, it had also been offered at a price of €4.44 the week before, i.e. already at the amount advertised as the “discount price”. The discount therefore did not relate to the best price of the last 30 days.
Price reduction must relate to reference price
The consumer could see from the footnote that the advertised product had already been offered for €4.44 within the last 30 days. However, the Wettbewerbszentrale considered this to be a violation of the Price Indication Ordinance (PAngV) and the Unfair Competition Act (UWG). However, advertising with discounted prices requires the retailer to state the lowest price of the last 30 days as the reference price – and not an arbitrarily chosen higher price. Only then is it guaranteed that the consumer has a guide to the extent to which the price reduction really represents a good or bad offer. In the present case, however, the consumer is misled by the incomprehensible information and thus left unaware of the real discount on the price of the goods.
The food retailer’s advertising with a price reduction of 36% therefore violates Section 5a (1) and (2), Section 5 (1) No. 3, (4) UWG and Section 11 (1) PAngV. This is because retailers who advertise a discount are obliged under the PAngV to disclose the lowest sales price that has been charged for the product in the previous 30 days.
This was also confirmed by the BGH and rejected the appeal lodged by Netto against the ruling of the Higher Regional Court (OLG) in Nuremberg (case no. 3 U 460/24). Netto must therefore refrain from advertising with unfair discounts and reimburse the Wettbewerbszentrale for the warning costs incurred.
In line with the case law of the ECJ
The European Court of Justice (ECJ) also clarified in its ruling of September 26, 2024 (Case C-330/23) that price reductions must always refer to the reference price so that the consumer is sufficiently informed about the scope of the price reduction. This is necessary to ensure a transparent price reduction for the consumer.
Read also: Examples of market conduct rules in competition law | Legal text: Section 11 PAngV
What is the reference price for discount campaigns?
The reference price is the lowest total price that a retailer has charged for the product in the last 30 days before the price reduction. Any advertised discount must refer to this price.
What happens if the reference price is not stated correctly?
Anyone who advertises a discount without using the lowest price of the last 30 days as a basis is in breach of Section 11 PAngV and the UWG. There is a risk of warnings and injunctive relief.
Does the 30-day rule also apply to online retailers?
Yes, the obligation to indicate the reference price applies to all retailers who advertise price reductions to consumers – regardless of whether the sale takes place in a stationary location or online.
