This article was published on 28 Jun 2022. Software and regulations change, so please check details before you decide.
Since 28 May, the new Omnibus Directive has applied in Germany, bringing extensive changes to unit pricing. Online retailers should definitely implement these changes too, as otherwise they risk formal legal warnings (Abmahnungen) and fines. But what exactly is the unit price?
The unit price is the price per unit of quantity, including VAT and other components. Under Section 2 of the Price Indication Ordinance (PAngV), the unit price must always be stated per unit of quantity. These units are precisely defined, for example 1 litre, 1 kilogram or 1 metre. The unit price is meant to help consumers compare prices more easily, especially when interchangeable products from different manufacturers are offered in different sizes. Put simply: which pack size gives customers the most product for their money?
Which goods are affected?
In addition to the final price, the unit price must be stated for goods offered by weight, volume, length or area:
- Goods in prepackages
- Goods in open packaging
- Goods sold as sales units without wrapping
- Exempt are goods for self-filling (e.g. vinegar or oil)
Example: if a retailer offers 500 grams of chocolate for 10 euros in their delicatessen online shop, they must state the unit price (€20/kg) as well as the final price. And it must appear in the immediate vicinity of the total price so that it is transparent, visible and unambiguous for consumers.
Only when consumers can see the unit price and total price at a glance is a quick comparison possible. Accordingly, it is not permitted for the unit price on websites or in online shops to be visible only via a separate link or a mouse-over.
Advertising with strike-through prices also becomes more transparent
The new Omnibus Directive also clearly regulates advertising with so-called strike-through prices. For retailers, strike-through prices are a popular marketing tool to tempt customers into buying. The bigger the difference between the previous price and the current one, the more tempted consumers feel, because they believe they are getting a substantial discount. The new Price Indication Ordinance stipulates that only the lowest price charged in the last 30 days may be used as the strike-through price.
Web Labels is your experienced partner for the Price Indication Ordinance
Presenting their websites in a legally compliant way causes many online retailers a degree of uncertainty and a great deal of extra work. Web Labels supports you as an experienced partner with all related changes to the Price Indication Ordinance. Feel free to contact us so that our experts can help you keep stating the “right” prices and avoid nasty surprises.
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