Netto's Price Advertising Controversy in the court of BGH: A Closer Look
BGH deliberates on affordable ad campaigns - Advertising negotiations conducted at a lower cost by BGH
The cat's out of the bag! The Central Office for the Suppression of Unfair Competition has called out Netto's advertising tactics, claiming they were misleading the public. This legal spat ended up at the Higher Regional Court of Nuremberg, where the office scored a significant victory back in September 2024. The court ruled that consumers deserved transparency regarding the extent of the price drop and the advertising was indeed misleading. Netto quickly appealed this verdict, heading to the Bundesgerichtshof (BGH).
Just when you thought the drama had died down, the European Court of Justice joined the fray in September 2024 as well. The ECJ ruled that the price reduction for ads must be calculated based on the lowest price of the preceding 30 days.
Fast-forward to March 27, 2025 when the BGH delivered its decision in case I ZR 222/19. This ruling is a hot topic in the legal world, particularly the interplay between German law and EU law in advertising and pricing practices. While the specifics of the Netto case ruling aren’t easily accessible, it’s clear that the BGH considered the ECJ's interpretation of advertising law and the criteria for advertising price reductions.
As experts dig into this ruling in publications from May 2025, it seems the BGH's approach emphasizes the importance of adhering to EU law principles for honest price advertising and consumer protection. So, it appears Netto needs to shape up and toe the line when it comes to their ad strategies, lest they face further legal woes. Stay tuned, folks, as this saga unfolds!
Finance experts are closely analyzing the BGH's decision delivered on March 27, 2025, in case I ZR 222/19, particularly the impact on business practices and advertising. The ruling emphasizes the need for companies like Netto to negotiate over advertising price reductions within their strategies, striving for transparency and adherence to EU law principles for honest pricing and consumer protection.
