Government Sues Supermarkets Over "Misleading Discounts"

The accusation is that the supermarkets are not fulfilling their obligation to indicate the lowest comparison price of the last 30 days during price reductions. As a result, it often remains unclear to consumers whether the discounts actually lead to savings.

Ministry of Social Affairs Identifies Lack of Transparency and Rule Violation in Discount Price Labeling in Supermarkets

The ministry refers to the so-called Price Indication Act, which is intended to ensure that discount promotions are not artificially inflated and that consumers are not misled. An example of the application of this norm is multiple promotions for a product within a short time frame: According to the law, the price of the later promotion must be compared with that of the first discount, provided it is the 30-day lowest price.

If this does not happen and an earlier "normal price" or a temporarily increased price (after the first discount promotion) is used as a comparison, it can - mistakenly - create the impression of significant savings. Furthermore, in other cases, discounts should not be advertised at all, as they are not "real" without indicating the correct 30-day lowest price, criticizes the Ministry of Social Affairs. Such practices are, however, quite common among some food chains.

Minister of Social Affairs Schumann Insists on "Clear and Fair Rules"

With the lawsuits, which aim for injunctions, Minister of Social Affairs Korinna Schumann (SPÖ) wants to establish "clear and fair rules": Price promotions must be "comprehensible and fair for everyone," she emphasizes in a statement, especially since "people have been heavily burdened by high prices for years" and therefore every euro counts when shopping for groceries. She echoes a similar sentiment to her party colleague, Finance Minister Markus Marterbauer (SPÖ), who recently initiated a debate on high food prices and possible interventions in prices in Austria. For SPÖ leader and Vice Chancellor Andreas Babler, market interventions are conceivable, as he said in an APA interview on Wednesday.

Indeed, it is likely a sensitive matter for many Austrians, as they are still confronted with relatively high inflation in the food sector, and the proportion of promotions in the food trade in this country is considered particularly high compared to the EU. In Austria, the food market is dominated by large chains - including those against which the VKI and the Ministry of Social Affairs are now taking action - accounting for nearly 90 percent.

No Comment from Supermarkets "Due to Lack of Knowledge" of the Lawsuit

Spar, Billa's parent company Rewe, Lidl, and Hofer all stated in response to an APA inquiry that they were not yet aware of the lawsuit's content and therefore could not comment. Similarly, Rainer Will, Managing Director of the Trade Association, said in the Ö1 "Morning Journal": "The regulations and laws regarding price labeling are stricter in hardly any other country than in Austria, and our food retailers adhere to them. We cannot comment on the lawsuit yet because it has unfortunately not yet been served to the four affected retailers." The Greens welcomed the lawsuit in a statement. However, this would only solve a partial problem, and the government must now do something overall against high prices - also in the energy sector. Support for the Ministry of Social Affairs' action also came from the Trade Union Federation (ÖGB).

Trade Expert Advises Careful Price Comparisons

WU trade expert Cordula Cerha advised consumers on ORF radio to "look closely" at discount promotions. It is advisable to compare kilogram prices and not be distracted by "particularly prominently marked and eye-catching advertising." The fundamental goal of discounts is to positively influence sales by "bringing consumers into the store," Cerha said in the "Midday Journal." "Then it's about ensuring they not only buy the discounted item but fill their entire shopping cart." The trade would typically offset the discount with the pricing of other items, the expert explained. For the retail chains, it is also about asserting themselves in the competition.

(APA/Red)

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