• Blog

New requirements for price information in Germany

On 28 May 2022 the amended version of the German Preisangabenverordnung (PAngV – Price Indication Regulation) has entered into force. The amended law includes some relevant changes in the German law – possibly also for your business. The new Price Indication Regulation does not provide for a transitional period, i.e. companies must comply with the new provisions from 28 May 2022. Therefore, price indications should be checked in due time because quotations of prices, e.g. online, are often the reason for cease-and-desist letters and lawsuits in Germany.  Here is a first overview of the most important amendments:

New information requirements with regard to price reductions

Section 11 PAngV is new. This section contains a new obligation to provide information to consumers when advertising price reductions. The legislator’s objective is to dampen advertising with so-called astronomical prices. The intention is to prevent that, when advertising price reductions, artificially high comparative prices are given, which never really existed or only existed very shortly before the price reduction.

Pursuant to Section 11 PAngV, in future the lowest price of a seller/dealer asked from consumers in the last 30 days before the reduced price is relevant: the so-called reference price has to be indicated when advertising price reductions. However, this obligation only exists if there is a real comparison of prices, e.g. “10 % discount” or quoting a price “instead of” another or crossing out a price. General statements about prices such as “Knallerpreis” (bargain price) or “Tiefpreis” (budget price) are not covered by the new provision. The new legal provision does not apply either to individually agreed discounts pursuant to Section 11 (4) PAngV, nor to price reductions on quickly perishable goods or goods with a short shelf life.

Quotation of the basic price

In future, companies will still be obliged to quote the basic price. The PAngV has so far required that the basic prices have to be quoted in immediate proximity to the total price. This requirement no longer applies. Rather, the basic price must now be “unambiguous, easily identifiable and clearly legible”. With this amendment, the legislator has finally correctly implemented European law. However, the explanatory memorandum of the Regulation still requires that the total price and the basic price are recognizable to the consumer at a glance.

Units for the basic price

Pursuant to Section 5 PAngV, in future 1 kilogramme or 1 litre, respectively, must be used as the standard reference unit for quoting the basic prices. Up to now it has been possible to refer to the units of 100 grammes or millilitres for goods whose nominal weight or nominal volume does usually not exceed 250 grammes or 250 millilitres. This exception has been deleted without replacement.

Please contact us if you have any questions or if we can support you in the implementation of the new legal provisions.