German Supermarket Aldi’s Fake Discounts Breach EU Law

The supermarket chain Aldi Süd cannot falsely claim discounts by raising prices only to reduce them again, a European Union court has ruled in a case brought by consumer activists from Baden-Württemberg, Jack Schickler reported for Euronews.

The EU Court of Justice ruled that traders are prohibited from misleading consumers by artificially raising prices before announcing reductions. I Photo: Geoprofi Lars Wikimedia Commons

Aldi Süd was found to have breached EU consumer law by falsely advertising discounts on everyday groceries like bananas. The company, which operates in southern Germany, was accused of inflating prices to create the appearance of a "shock price" reduction in its promotional fliers.

Consumer activists filed the case, citing an advertisement in which Aldi claimed to have reduced the price of bananas by 23%.

The EU Court of Justice ruled that traders are prohibited from misleading consumers by artificially raising prices before announcing reductions.

Price reductions in percentage form must be based on the lowest price charged during the 30 days prior to the discount. Aldi’s fine print revealed that the price of bananas had not been lower during the previous month, violating EU rules on pricing and unfair commercial practices.