Changes to the German Price Indication Ordinance (Preisangabenverordnung, PAngV) took effect on 28 May 2022. Businesses that advertise prices or quote them in offers must therefore pay particular attention to the following, or risk receiving warning letters from competitors or business associations with a standing to sue, or even face fines:
Note: The regulations only apply to business-to-customer (B2C) and not business-to-business (B2B) sales.
1. Price reductions
New in section 11 Price Indication Ordinance: When advertising goods with a price reduction, the lowest overall price applied in the last 30 days must be indicated as reference. This is to prevent comparison with unrealistic, short-term prices.
- Example 1: A dress first costs EUR 100, then EUR 150 for two weeks, and then EUR 75 after that. The lowest price 30 days prior to the reduction is therefore EUR 100. Only this price may be used for comparison.
- Example 2: A dress first costs EUR 100, then EUR 150 for eight weeks (i.e. more than 30 days), and then EUR 75 after that. Relevant reference price: EUR 150.
Exception: If prices are gradually reduced, without interruptions, the lowest price during the 30 days before the application of the first price reduction can be used as a reference. Example: A dress first costs EUR 100, then EUR 90, then EUR 70 and then (four weeks after the first price reduction) EUR 50. The seller can use its prior price of EUR 100 for comparison.
However, there are also still some open questions, including: Do separate sales campaigns qualify as a price reduction “without interruptions”? Example: price reductions applied during a Black Friday campaign and then during a Cyber Week or other sale.
Section 11 only covers goods, not services or digital products. It only applies if reference is made to an prior price, i.e. not if only the new price is mentioned. It does not apply to references to an RRP, to general statements such as “sale”, to offers such as “buy 1, get one 1 free” or “buy 3 pay for 2” etc., nor to perishable goods or individual price reductions.
2. Bottle deposit
In the case of bottle deposits, the deposit must still be indicated next to the final price. It is still not certain, however, whether this will hold up before the European Court of Justice. Proceedings are already pending there after the Federal Court of Justice referred this question to the ECJ.
3. Basic price
For pre-packaged goods, in particular, the basic price must still be indicated in an “unambiguous, easily identifiable and clearly legible” manner. The relevant units of measurement are 1 kilogram, 1 litre, 1 cubic metre, 1 metre or 1 square metre. Smaller units (100 gr/100 ml) are only allowed for loose goods (e.g. fruit); in the case of customer self-service, the basic price by weight may also be indicated. “Easily identifiable” means identifiable at a glance and therefore rules out the use of hover or mouseover action or separate links. However, it is no longer necessary for the basic price to be indicated “in close proximity” to the final price.
Gleiss Lutz comments
The German Price Indication Ordinance (PAngV) remained unchanged for a long time, while fundamental framework conditions have changed, especially at European level. The innovation – triggered by the EU’s Omnibus Directive – takes this into account to some extent. However, a number of questions remain unanswered, in particular regarding the regulation’s compatibility with EU law.
The above points only concern what we consider to be the major new developments. In addition, the PAngV contains many other requirements (such as the obligation to truth and clarity in pricing, to indicate final prices, etc.) that still need to be met. The German Unfair Competition Act (Gesetz gegen den unlauteren Wettbewerb, UWG) also imposes price advertising requirements, all of which cannot be presented here.
Companies are therefore strongly advised to take a close look at these regulations, regardless of whether they are online or brick-and-mortar businesses.
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