🛒 Misleading Discounts and Legal Action
Amazon has been warned by the Baden-Württemberg consumer advice center over misleading discount practices. According to the center, Amazon is using inflated reference prices that give customers a false sense of saving. Oliver Buttler from the consumer center stated, "We see the price advertising in question as unlawful bait advertising and consumer deception." A lawsuit has been filed to force Amazon to change these practices and comply with EU law.
📉 EU Law on Discount Advertising
The dispute centers on how discounts are advertised. EU law requires that discounts be based on the lowest price in the last 30 days, but Amazon uses the manufacturer's recommended retail price (RRP) as a comparison. According to the consumer center, this misleads customers into thinking they are getting a better deal than they actually are. Amazon argues it is complying with laws but uses different reference points in the U.S. and Germany.
🇪🇺 Recent European Court Ruling
On September 26, the European Court of Justice (ECJ) ruled that Aldi, another retailer, must use the lowest price in the past 30 days for discounts. This case has broader implications for e-commerce in the EU. The ruling strengthens consumer protection and transparency. The lawsuit against Amazon seeks to apply similar principles, pushing the retailer to align with EU standards on pricing transparency.
🇺🇸 Class Action in the USA
The German case echoes a class action lawsuit against Amazon in the U.S., where it is accused of similar practices. Plaintiffs claim Amazon inflates original prices to create the illusion of larger discounts. While Amazon states it follows a 90-day price comparison in the U.S., the lawsuit alleges that it does not always adhere to these rules. These cases show the growing scrutiny Amazon faces over its pricing strategies on both sides of the Atlantic.
Do you trust online discounts when shopping?
