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Discount Promotions and Reference Prices: What entre-preneurs need to know now

11/18/2025

Author

Michael Froner

Attorney at Law

Discount campaigns are a popular marketing tool, but the legal requirements for price labelling are strict. Anyone who makes mistakes here risks not only penalties, but also the trust of their customers. Especially during high-sales periods such as Black Friday, many companies attract customers with discounts and special offers, but they must comply with legal requirements for price labelling. Violations can be expensive and cause lasting damage to a company's image. This article provides an up-to-date overview of the legal basis and practical recommendations for companies.

Legal framework: The 30-day rule and its significance

Section 9a of the Price Marking Act ("PrAG") contains a key requirement:

Any price reduction must refer to the lowest price that was actually charged in the last 30 days prior to the promotion. This applies to all "strikethrough prices" and advertising statements that emphasize the advantage of a price. It is not sufficient to use any previous price or the non-binding retail price as a reference. The lowest retail price charged in the last 30 days in the respective sales channel is decisive.

This rule is intended to prevent artificially high "strike-through prices" from being used to make discounts appear larger than they actually are. The reference price must be stated clearly, distinctly, and unambiguously. A mere reference in the small print or in a footnote is not sufficient and is considered inadmissible by case law. Case law emphasizes that transparency and traceability for consumers are paramount.

The obligation to indicate the 30-day best price applies to discounts in the form of amounts or percentages, but not to volume discounts or bundled offers such as "two for the price of one."

Inadmissible and admissible variants of the strike-through price

It is therefore inadmissible to indicate a replacement price that was never actually charged or does not correspond to the lowest price of the last 30 days. It is also inadmissible to indicate the reference price only in small print or as a footnote that is difficult to find. It is also not permissible to indicate a recommended retail price or a fictitious price as the "previous price."

Sanctions and injunctive relief

Violations of the provisions of the Price Marking Act constitute an administrative offense and can be punished with a fine of up to EUR 1,450 per violation pursuant to Section 15 PrAG. In addition, there is a risk of injunctive relief, removal, and damages claims under competition law pursuant to the Federal Act Against Unfair Competition ("UWG"). It is particularly unpleasant that the publication of the judgment may also be sought. Misleading price labelling can be prosecuted not only by competitors, but also by associations such as the Association for Consumer Information pursuant to Section 14 UWG. The courts have repeatedly clarified that inadmissible "stretch prices" are to be classified as misleading business practices and give rise to corresponding claims under the UWG.

Recommendations for action for entrepreneurs

Companies should carefully review their pricing strategy before any discount campaign and document price developments in full. It is advisable to use digital systems that automatically record and archive the lowest price of the last 30 days. When advertising price reduc-tions, care must be taken to ensure that the reference price is clearly, visibly, and unambiguously displayed directly next to the price. Advertising claims should be checked for legal admissibility to minimize the risk of misleading consumers and the associated warnings, administrative penalties, and legal proceedings. The marketing and sales team should also receive regular training on the current legal requirements so that everyone involved is aware of the importance of correct price labelling. Finally, it is advisable to seek legal ad-vice in good time in case of uncertainty to avoid unpleasant surprises.

Conclusion

The legal requirements for price labelling are not a minor detail but are binding and subject to monitoring. If you want to ensure that your discount campaigns are legally compliant, you must consistently observe the 30-day rule and ensure transparency. This not only avoids legal risks and sanctions, but also strengthens customer trust in the long term.

Author

Michael Froner

Attorney at Law