German supermarket Aldi Süd loses EU court case over discount pricing

The German supermarket Aldi Süd lost a case over misleading pricing at the European Court of Justice (ECJ) on Thursday.

Price reductions announced in advertisements "must be calculated" on the basis of the lowest price over the past 30 days, the Luxembourg-based court said in a press release on the ruling.

A consumer advice centre in the German state of Baden-Württemberg complained about an advertisement from Aldi Süd in a weekly brochure for bananas and pineapples called "Germany's best price."

According to the ECJ, the pineapples were advertised at a "price highlight" of €1.49 ($1.66) each with the price of €1.69 crossed out.

In small print, however, it was stated that the lowest price in the last 30 days was €1.39 - and therefore lower than the "price highlight."

The consumer advice centre said it was not sufficient simply to state the lowest price in the last 30 days in the advertisement, citing EU law.

The ECJ agreed in its ruling.

To stop businesses from misleading consumers, it is not permitted to increase the price charged before announcing a price reduction "and thus displaying false price reductions," the ECJ said.

A German court submitted the case to the ECJ for a preliminary ruling. The case now returns to the German court where the ECJ's decision must be carried out.