# Advertising with a reduced price requires clear indication of the lowest total price Source: https://www.mtrlegal.com/en/advertising-with-reduced-price-requires-clear-indication-of-lowest-total-price/ · Language: en · Updated: 2026-07-27 --- ## Requirements for Price Advertising in Trade and Its Legal Classification The persistently strict regulations for price advertising in retail require companies to exercise utmost care when announcing price reductions. At the same time, recent court rulings, emphasized by a decision of the Federal Court of Justice on October 9, 2025 (Case No. I ZR 183/24), have comprehensibly tightened the legal regulations for the protection of consumer rights. According to this, transparent pricing is not only a competitive necessity but also imperative for consumer protection. ### Legal Basis for Price Indications in Discounts #### Implementation of the Price Indication Regulation (PAngV) and Directive (EU) 2019/2161 Since May 2022, section 11 of the PAngV regulates the information obligations when announcing price reductions for goods to consumers. The core of the regulation is that, alongside the new (reduced) price, the lowest total price must be stated that was asked for the product in question within the preceding 30 days before the promotion. This regulation is the result of the European "Omnibus Directive," which aims to protect consumers from misleading discount actions and curb unfair competition. Against this background, every price reduction followed by price advertising to consumers implies a high degree of transparency. The obligation to state the lowest total price exists regardless of the extent of the reduction or the duration of the price measure. An exception generally applies only to fresh, quickly perishable goods. #### Consequences of Faulty or Incomplete Price Advertising Anyone who violates these regulations risks not only warnings from competitors and consumer associations, but also faces sanctions under the Act Against Unfair Competition (UWG). Furthermore, faulty price indications can also be subject to fines. As a consequence, practice requires careful documentation and continuous monitoring of all price changes for every price advertisement. ### The Current Federal Court Decision: Clarity and Distinctness as Measure #### Facts and Legal Classification In the underlying case, a company advertised a product with a "reduced price" without mentioning the reference price required by section 11 PAngV for the last 30 days. The Federal Court of Justice emphasized in its decision that price advertising only meets legal requirements if it is unambiguous, clear, and comprehensible to consumers in every respect. The court made it clear that merely indicating a previous, possibly non-binding recommended price does not suffice to meet the legal transparency requirements. Consequently, it must be ensured that the lowest price from the past 30-day period is verifiably stated for every discounted product. This applies to both online shops and physical retail. Companies cannot rely on a differing understanding by customers or any industry practices to deviate from these obligations. #### Impacts on Business Models and Internal Processes The decision of the Federal Court has noticeable consequences for all market participants - irrespective of company size or sales channel. The interplay of pricing strategies, advertising measures, and IT-supported price management gains significantly in complexity. The traceability and constant retrievability of all price changes is indispensable from a regulatory perspective. Companies are well advised to regularly review their processes, particularly in marketing and sales, and adjust them to the current legal situation to avoid liability-prone errors. ### Market-Practical Aspects and Special Challenges #### Handling Dynamic Price Adjustments In increasingly dynamic markets, such as online trade with automated price adjustments (Dynamic Pricing), the seamless documentation of the respective sales prices becomes a central compliance risk. Even short-term promotional campaigns or daily offers can lead to a multitude of price changes within a short period. The obligation to display the lowest 30-day total price applies without restriction and regardless of the frequency of price changes. For internationally operating providers, there may be additional challenges in synchronizing different national regulations, which may vary depending on the home market or foresee additional transparency requirements. #### Challenges in Product Bundling and Assortment Planning Especially regarding product sets, bundles, or variably configurable goods, the question arises regarding how the relevant reference price must be correctly stated. For these situations too, the jurisdiction demands a transparent and precise indication of the respective lowest price, related to the specific product composition. ### Conclusion: Legally Secure Price Advertising as an Ongoing Task Recent case law emphasizes the high relevance of clear and comprehensible price indications not only to enhance consumer protection but also to ensure fair and transparent competition. The precise implementation of European directives into national law and their consistent application in everyday business poses ongoing challenges for companies. For questions about legally compliant pricing or uncertainties regarding the current interpretation of the Price Indication Regulation, the attorneys at MTR Legal Attorneys are available with their many years of experience and industry knowledge.