The German Federal Court of Justice [Bundesgerichtshof, BGH] has ruled that the basic price must be indicated in close proximity to the sales price. The decision is based on a ruling from May 2022 (BGH, ruling dated 19 May 2022 - I ZR 69/21). According to the BGH, this offers consumers optimal possibilities to assess and compare the prices of products and thus make informed decisions.

The case: basic price indication on the internet

In the case at hand, a trader had offered on the internet a hydro-plunger additive (automotive accessory) with a volume of 300 ml and a ceramic paste weighing 50g. Its offer did not specify the basic price. An association of online entrepreneurs objected to this presentation of the offer. In the preliminary injunction proceedings, the retailer was ordered to cease and desist its actions, but not to place the information in "close proximity" to the total price in the future. The suing association was defeated at first and second instance. The BGH, in contrast, sentenced the internet retailer in accordance with the motion.

Legal background

With its practice, the retailer had violated its obligation to also indicate the price per unit of quantity (i.e., in this case, price/litre or price/100g), including sales tax and other price components (basic price), in close proximity to the total price for goods that it offered to consumers by volume or weight in pre-packaged form, as required by the German Price Indication Ordinance [Preisangabenverordnung, PAngV] (Sec. 2 (1) sentence 1 PAngV, old version). In addition, the court considered this to be an unfair and unlawful act (Sec. 5a (2) sentence 1, (4) German Unfair Competition Act [Gesetz gegen den unlauteren Wettbewerb, UWG] and Sec. 3 UWG). This simultaneously gave rise to a claim to injunctive relief (Sec. 8 (1) sentence 1, (3) No. 2 UWG).

New Price Indication Ordinance 2022

The German Price Indication Ordinance is the national implementation of European Directive 98/6/EC, the so-called Basic Price Directive, which has recently been modernised by Directive 2019/2161/EU. The obligation to indicate a basic price now arises from Secs. 4 and 5 PAngV and applies in the new version since 28 May 2022.

The basic price, with some exceptions, must be indicated - in addition to the final price - for the following goods if they are offered by weight, volume, length or area:

  • Goods that are pre-packaged,
  • Goods in open packages,
  • Goods delivered as sales units without wrappings.

Here, the basic price must be displayed in such a way that it is "unambiguous, clearly recognisable and easy to read" for the consumer. Total price and basic price must be perceptible at a glance.

Online traders should therefore refrain from using a separate link that first has to be clicked on to find out the basic price, or even a so-called "mouse-over", where the basic price only becomes visible when the cursor is moved over a certain area. Otherwise, traders risk receiving warnings that incur costs.

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.