CJEU Aldi price comparison ruling sets ’30-day rule’

It follows a landmark decision from the Court of Justice of the European Union (CJEU) aiming to enhance consumer protection and prevent misleading advertising practices.

“An interpretation battle between the EU Commissions, various national regulatory authorities and e-commerce industry stakeholders has been settled following this decision,” said Jeroen Schouten, cyber and technology expert at Pinsent Masons.

The case was brought before the CJEU by a German consumers’ association, which challenged Aldi’s method of advertising price reductions. The association argued that Aldi’s practice of calculating price reductions based on the price immediately prior to the offer, rather than the lowest price in the last 30 days, was misleading. For instance, if a product was advertised with a price reduction from €1.69 to €1.29, the association contended that the reduction should be based on the lowest price of €1.29 in the preceding 30 days, not the immediate prior price of €1.69.

The German court sought a preliminary ruling from the CJEU on whether this practice complied with EU law. The CJEU clarified that, under EU Directive 98/6/EC on consumer protection in the indication of prices, as amended by Directive (EU) 2019/2161, price reductions must be calculated based on the lowest price applied by the trader during a period of at least 30 days prior to the price reduction.

The ruling aims to prevent retailers from artificially inflating prices before announcing a discount, thereby misleading consumers about the true value of the price reduction.

The judgment also addresses the use of promotional statements such as ‘price highlights’ in advertisements. The CJEU emphasised that any promotional statement intended to stress the advantageous price of an offer must also be based on the lower price in the last 30 days to ensure consistency and transparency in advertising practices across the EU.

However, organisations can continue to promote products at lower prices without complying with the ’30-day rule’ under certain circumstances.

“E-commerce businesses and merchants can avoid the requirement to indicate the best price of the last 30 days by omitting the comparison with the original price and the indication of a percentage discount. For example, by using general terms such as ‘low price’, ‘promotional price’, ‘sale’ or ‘special offer’ or by comparing the price with the manufacturer's suggested retail price,” said Anna-Lena Kempf, brand protection specialist at Pinsent Masons.