Court Decides Commission Neglected Duties under Article 85 (1) of the Treaty

Unpacking the Java Caffeine Controversy: Netto's Ad disputed by Federal Court of Justice

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Controversy over Decaf Coffee Advertisements Reaches Federal Court of Justice - Court Decides Commission Neglected Duties under Article 85 (1) of the Treaty

Netto, a popular supermarket chain, has sparked controversy with their advertising tactics for their coffee. The advertisement boasted a four-figure price point: the current selling price of €4.44, the crossed-out price of the previous week's €6.99, a discount of 36 percent; included in a footnote, the lowest price of the past 30 days was also given, which was €4.44.

The new pricing regulation, enacted approximately seven months prior, required advertisers to disclose the lowest total price of the last 30 days for a product when promoting a price reduction. This initiative was part of the broader EU law implementation.

The Competition Centre maintained that Netto's coffee advertising was misleading and violated the regulations, resulting in a lawsuit aimed at preventing Netto from continuing their advertisement strategy. The Regional Court of Nuremberg agreed with the lawsuit in September 2024, asserting that the advertising was confusing. However, it left open the question of whether a discount should always be based on the lowest price of the past 30 days. This question was swiftly addressed by the European Court of Justice in Luxembourg in connection with another legal dispute, with the ruling being affirmative.

Now, the Federal Court of Justice needs to determine the implications of this ruling for the specific case and whether the Regional Court's decision stands. Netto's legal representative argued in court that the footnote was "somewhat dense," but not misleading, whereas the Competition Centre's lawyer argued that the footnote with the 30-day lowest price was printed much smaller, and the "eye-catcher" of the advertisement was the 36 percent reduction.

Reiner Münker, managing board member of the Competition Centre, expressed optimism after the hearing in Karlsruhe. "Price clarity was not provided for us as consumers. We didn't really know anymore: What was the lowest price for this specific coffee product?", he summarized the issue. He believes that the Federal Court of Justice will ban the advertising.

Netto declined to comment on ongoing proceedings, and a verdict has yet to be announced. Typically, the Federal Court of Justice announces its judgments a few weeks after the oral hearing.

• Federal Court of Justice
• Netto
• Karlsruhe
• Netto Marken-Discount
• EU

Additional Insights:

Research findings indicate a lack of updated information about a specific ruling by the Federal Court of Justice relating to Netto's advertisement of coffee prices in accordance with EU pricing regulations. To gather more details on this matter, it is advisable to consult official releases from the Federal Court of Justice or authoritative legal databases in EU jurisdiction.

1. The Federal Court of Justice in Karlsruhe needs to decide whether Netto's coffee advertising, which was deemed misleading by the Regional Court of Nuremberg, complies with EU pricing regulations, considering the European Court of Justice's ruling on a similar matter.
2. Reiner Münker, from the Competition Centre, is optimistic that the Federal Court of Justice will ban Netto's advertising strategy, citing a lack of price clarity for consumers, as the disputed advertisement did not provide clear information about the lowest price for a specific coffee product in the past 30 days.

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