The May 28, 2022, deadline will usher in some changes for companies that affect contracts with consumers. We have already reported on the new fines.
Today, we will highlight changes in price indication law. The relevant Price Indication Ordinance will also come into force in a completely new version on May 28, 2022.
Scope of application of the Price Indication Regulation
The regulation governs the indication of prices for goods or services from companies to consumers. It not only applies to the specific price quotation shortly before the purchase, but also to any advertising with prices. The regulation may also result in an obligation to provide price lists and much more, which would go beyond the scope here.
The Price Indication Regulation is not relevant for verbal statements.
Some basic principles for offers and advertising with prices
The regulation requires the indication of total prices and, under certain circumstances, also basic prices.
The total price includes the price of the goods, but also all additional costs that are necessarily incurred, such as sales tax. In addition, in the case of distance selling, it must be stated in offers whether additional freight, delivery or shipping costs or other costs will be incurred, as well as their amount under certain circumstances.
Base prices are relevant for goods that are sold by weight, volume, length or area, regardless of whether the goods are already pre-packaged. If the yoghurt packaging states 75g, a base price for one kilogram must be calculated so that consumers can easily compare prices.
Changes in 2022
While it used to be allowed to refer the base price to 100 grams or milliliters for package sizes under 250 grams or milliliters, this will no longer be the case. Base price information must now almost always be calculated on the basis of 1 kilogram, 1 liter, 1 cubic meter, 1 meter or 1 square meter of the goods.
There is a slight relaxation of the rule regarding how close the base price must be displayed to the total price. Previously, it had to be displayed immediately next to the price. Now, the information only has to be unambiguous, clearly recognizable and easily legible. Nevertheless, it will probably not be possible to work with links or complex mouse-over processes in online trading; instead, everything must be visible at a glance.
Another new requirement for price reductions is also interesting. If a price reduction is advertised in the future, the lowest total price that was applied to consumers within the last 30 days before the price reduction was applied must also be stated. This should help consumers to better assess special offer advertising.
We would be happy to advise you on the details of the Price Indication Ordinance and other obligations under price indication law. The legal text can currently be found in the Federal Law Gazette.
The statements represent initial information that was current for the law applicable in Germany at the time of initial publication. The legal situation may have changed since then. Furthermore, the information provided cannot replace individual advice on a specific matter. Please contact us for this purpose.