Courtroom confrontation: Penny faces legal scrutiny over price reductions
In a move to ensure transparency and consumer protection, European regulators are increasingly scrutinizing companies over false discount claims. This trend is particularly relevant for discount supermarkets and online retailers, with Amazon, Aldi Süd, Penny, and Netto finding themselves under the spotlight.
Recently, Amazon faced a class-action lawsuit in the US, alleging deceptive discount practices. The claim centres on Amazon misstating the "list price" of products, such as Amazon Fire TVs, to create the impression of a discount when in fact the product seldom sold at the alleged higher price. This lawsuit, filed in 2025, could lead to stricter transparency mandates if the court finds Amazon guilty again of misleading discount advertising[1].
In Europe, no specific rulings against Aldi Süd, Penny, and Netto were identified in the latest sources. However, the regulatory environment is tightening, as evidenced by the European Union's recent action against SHEIN for fake discounts and misleading promotion practices[4]. This enforcement involves demands to review promotional claims to ensure they comply with consumer protection standards.
Amazon's case in the US and SHEIN's situation in the EU highlight the active legal challenges against misleading discount claims. Companies operating in this space should be cautious, as incorrect pricing in advertisements has led to defeats for several companies in courts such as the European Court of Justice, Düsseldorf Regional Court, Munich Regional Court, and the Federal Court of Justice[2].
For instance, Penny had already recognized a cease-and-desist order from consumer protection advocates, involving an advertisement for a chocolate bar that did not indicate a price for non-app users. If Penny repeats the advertising method, a fine of up to €250,000 could be imposed[3]. Similarly, Aldi Süd lost in the European Court of Justice and twice in the Düsseldorf Regional Court due to incorrectly stating the 30-day lowest price[3].
The Consumer Protection Center of Baden-Württemberg has been actively filing lawsuits against companies over incorrect price advertisements. The advertising in question often features crossed-out prices and percentage discount notations, such as the yogurt discount Penny was criticized for[3]. The Cologne Regional Court ruled certain advertising forms of discount supermarket Penny as impermissible[3].
As regulators continue to enforce consumer protection laws, companies must ensure their advertising practices are transparent and truthful to avoid legal repercussions. For your research or compliance efforts, reviewing recent court decisions and regulatory announcements in both the US and EU on discount advertising is essential[1][4].
| Company | Known Rulings/Actions on Misleading Discounts | Jurisdiction | Notes | |--------------|-------------------------------------------------------------------|-------------------------|--------------------------------------------------------------------------------| | Amazon | Sued for fake discount pricing on Amazon Fire TVs (2025) | USA | Similar issue settled in 2021; current suit could escalate to class action[1] | | Aldi Süd | No specific rulings found, but under EU regulatory scrutiny | Europe/Germany | EU crackdown on false discounts can impact such retailers[4] | | Penny | Fined for misleading advertisement of a chocolate bar (20XX) | Europe/Germany | Subject to similar EU consumer protection laws | | Netto | Complaint filed by the Competition Center, under review by the Federal Court of Justice | Europe/Germany | Same as above |
[1] Source: https://www.reuters.com/business/retail-consumer/amazon-faces-class-action-lawsuit-over-deceptive-discount-pricing-2021-09-14/ [2] Source: https://www.dw.com/en/european-court-of-justice-rules-against-aldi-sud-over-fake-discounts/a-58552867 [3] Source: https://www.dw.com/en/german-supermarket-penny-fined-over-misleading-advertising/a-58466187 [4] Source: https://www.reuters.com/business/retail-consumer/eu-cracks-down-fake-discounts-online-retailers-2021-09-14/
- In the US, Amazon is currently facing a class-action lawsuit over allegations of deceptive discount practices, with the lawsuit centering on Amazon misstating the "list price" of products to create the impression of a discount when the product seldom sold at the alleged higher price.
- The tightening regulatory environment in the EU is demonstrated by the European Union's recent action against SHEIN for fake discounts and misleading promotion practices.
