ARTICLE
18 October 2024

Consumer Law Update – CJEU Rules That A Price Reduction Announced In An Advertisement Must Be Calculated On The Basis Of The Lowest Price In The Last 30 Days

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On 26 September, the Court of Justice of the European Union ("CJEU") issued its much anticipated decision in the case Aldi Süd (C-330/23) concerning the announcement of price reductions in an advertisement.
European Union Media, Telecoms, IT, Entertainment

September 2024 – On 26 September, the Court of Justice of the European Union ("CJEU") issued its much anticipated decision in the case Aldi Süd (C-330/23) concerning the announcement of price reductions in an advertisement.

At issue was whether a price reduction announced in an advertisement must be calculated on the basis of the lowest price in the last 30 days, or whether the price reduction can be calculated from another price, with the information on the lowest price in the last 30 days being provided together with the reference price for calculating the reduction (as an additional figure).

The CJEU concluded that that a price reduction announced in an advertisement must be determined on the basis of the lowest price applied by the trader during a period not shorter than 30 days prior to the application of the price reduction. Traders are thus prevented from misleading the consumer by increasing the price charged before announcing a price reduction and thus displaying false price reductions.

The judgment has major implications for the retail and other sectors as it unifies the interpretation of consumer rules across the EU and sheds light on previous interpretative ambiguities that have arisen in daily practice in relation to the announcements of price reductions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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