Consumer advice center is suing against misleading price advertising in retail: analysis by financial experts

Consumer advice center is suing against misleading price advertising in retail: analysis by financial experts

According to a report by www.hna.de, the Baden-Württemberg consumer advice center is taking legal action against misleading advertising with price advantages in stores. Aldi, Lidl, Edeka Südwest and Netto are being sued because of advertising with price reductions.

The consumer advice center complains that some of the dealers' offers are more like marketing tricks that make consumers believe they are getting a bargain, even though this is actually not the case. Among other things, Aldi Süd is accused of advertising with percentage price discounts without stating the lowest price of the last 30 days for the advertised goods. Similar allegations are also directed against Lidl and Edeka.

Consumer advocates claim that the stated price advantages are not realistic and that consumers are being deceived. For example, in one case bananas were advertised with an apparent price advantage, but the actual savings price was doubtful.

The legal processes are intended to clarify fundamental questions about the new price information regulation, which, since May 28, 2022, has required providers to indicate the low price of the last 30 days for advertised goods. The hearing is expected at the Düsseldorf regional court.

The impact on the market could be significant as consumers may lose trust in the advertising of said retailers. It could ultimately lead to a decline in trust and customer loyalty. Consumers could also be encouraged to compare more critically, leading to a change in purchasing behavior. The companies themselves could be negatively affected by possible loss of image and legal consequences. It is therefore important that companies are transparent and honest with their price offers in order to maintain consumer trust.