Price transparency in retail: What companies need to know about Section 11 of the German Price Indication Regulation (PAngV)

Since 28 May 2022, an extended transparency obligation has been in force in Germany for companies advertising price reductions. According to Section 11 of the Price Indication Regulation (PAngV), retailers must indicate to consumers not only the reduced price but also the lowest total price they have charged for the same product in the last 30 days prior to the price reduction. 

A quick look at the brochures or websites of major retailers shows that this regulation is being implemented differently in some cases. The courts have also already dealt with the first cases of alleged violations of Section 11 PAngV. This raises the question of how retailers can correctly implement the regulation’s requirements and advertise price reductions in a compliant and legally secure manner.

This article provides an overview of the key elements of this regulation and addresses the question of how the indication of a common recommended retail price (RRP) relates to the obligation to indicate the 30-day price.

Background and objective: Providing greater protection against bogus discounts

Section 11 PAngV transposes the EU’s “Omnibus Directive” into German law. The aim is to protect consumers from misleading discount campaigns. For instance, it aims to prevent retailers from raising their prices shortly before a promotion in order to be able to advertise high discounts. Such “bogus discounts” undermine consumer confidence in fair pricing. It should be noted that Section 11 PAngV applies both online and offline in stationary retail.

The new regulation aims to increase transparency: consumers can now see whether an advertised discount represents a genuine saving or if the “reduced” price is actually the usual retail price. While this means more documentation requirements for companies, it also provides more legal certainty if implemented correctly.

What constitutes an “announcement of a price reduction”?

A price reduction is a decrease in the total or base price of a product, expressed as a monetary amount or percentage, compared to the total or base price previously charged. If the retailer announces this price reduction to consumers, i.e. if it is advertised, Section 11 PAngV applies. Therefore, it depends on the announcement or advertising of the price reduction – for example, by:

•   Crossed-out old prices
•   Discount notices (“20% off”, “Now only 49.99€”)
•   Comparative price displays

However, not every price reduction automatically falls within the scope of Section 11 PAngV. The decisive factor is whether the reduction is actively advertised. Those who reduce the price without highlighting this in their advertising, for example by refraining from comparing it with the previous price, are not subject to the obligation to indicate the 30-day price. According to paragraph 4, individual price reductions and, under certain conditions, price reductions for perishable goods or goods with a short shelf life are also exempt.

It is important to note that, according to the German explanatory memorandum (BR-Drucksache 669/21), general price statements without an announcement of a specific price reduction (e.g. “sale”, “low price” or “bargain price”) are not covered by Section 11 PAngV. However, it is unclear whether this is aligns with EU law. The EU Commission takes a different view in its own interpretation (see section 1.1 of the Guidelines on the interpretation and application of Article 6a of Directive 98/6/EC). According to this interpretation, even general announcements that create the impression of a price reduction must indicate the lowest price of the last 30 days, although this does not necessarily have to be done within the announcement itself, but rather by indicating it for the respective items. It remains to be seen how this contradiction will be resolved by the courts in future proceedings. The European Commission’s interpretation is not legally binding.

Typical practical cases

Temporary discount campaigns: An online shop offers a dress for 69.99 € instead of 89.99 € and advertises this with “Sale”. 
Black Friday promotions: The obligation also applies to limited-time promotions such as Black Friday or Cyber Monday. Companies must document the price that was actually charged in the 30 days prior to the promotion.
Dynamic prices: For products with frequently fluctuating prices (e.g. due to algorithmic price adjustments), documentation can be time-consuming. Nevertheless, the lowest price within the 30-day period is decisive, not an average price.

What needs to be considered with regard to Section 11 PAngV in the case of RRP? 

How should an RRP indication be assessed in this context? It is a classic marketing tool: the manufacturer recommends a retail price, and the retailer sells at a lower price, highlighting the savings.

Does deviating from the RRP constitute a price reduction within the meaning of Section 11 PAngV?

No, if the retailer has never sold at this price themselves, a selling price that deviates from the RRP is not automatically a price reduction within the meaning of Section 11 PAngV. The RRP is merely a manufacturer’s recommendation, not the retailer’s own previous price.

Section 11 PAngV expressly requires the lowest price charged by the retailer in the last 30 days. The RRP as such does not automatically fulfil this requirement if the retailer has never charged a price in line with it.

However, problems can arise if the RRP is not only given as a reference, but the design of the advertisement for the current sales price gives consumers the impression of an actual price reduction. This occurs, for instance, when the RRP appears to the average consumer as a price reduction due to the design of an advertisement for a product in a brochure (see OLG Düsseldorf, judgment of 18 December 2025, ref. I-20 U 43/25, GRUR-RS 2025, 38428). 
What should generally be considered when stating an RRP? 

1.   Truthfulness: The RRP must have actually been recommended by the manufacturer and must not be fictitious.

2.   Market conformity: The RRP should be the price at which the product is sold on the market. If retailers never sell at the RRP, this information could be misleading.

3.   Labelling: It must be clear that this is a manufacturer’s recommendation (e.g. “Manufacturer’s RRP: 199 €”).

Does the lowest 30-day price have to be indicated in addition to the RRP?

That depends on whether the retailer itself is advertising a price reduction:

•  Only RRP information without own discount advertising: If a retailer only displays “RRP 199 €, our price: 149 € without advertising this as its own price reduction, § 11 PAngV does not apply.

•   RRP plus own discount advertising: If the retailer also advertises its own price reduction (e.g. “Previously 169 € with us, now only 149 €), the lowest own price of the last 30 days must be stated.

•   Be careful with double price displays: If you show both the RRP and your own crossed-out price, you must ensure that the crossed-out price was actually the lowest price in the last 30 days – otherwise you risk a competition violation.

Therefore, the RRP remains a permissible marketing tool and its indication does not in itself trigger any obligation under Section 11 of the PAngV. However, retailers must clearly distinguish between the RRP and their own price reductions, and indicate the lowest 30-day price for the latter.

Practical recommendations 

When advertising price reductions, retailers should note the following points:
•   Systematic documentation of all price changes over at least 30 days
•   Check for each discount promotion. What was the lowest price in the last   30 days?
•   Clearly visible indication of the 30-day price next to the reduced price 
•   Avoid mixing RRP and own price reductions
•   Correct labelling: “Lowest price in the last 30 days: X €”
•   The ECJ (judgment of 26 September 2024 – C-330/23) has already clarified   that advertising with a price reduction such as a percentage saving must refer to the lowest price of the last 30 days.
•   Conduct regular training for the relevant employees 
•   Regular review of product pages 
•   In case of doubt: carry out a legal review 

Specific implementation examples:

•   Correct: “Our price: 49,99 € | Lowest price in the last 30 days: 59,99 €”
•   Correct: “Manufacturer’s RRP: 199,00 €| Our price: 149,99 €” (without own  discount advertising)
•   “79,99 € now 49,99 €” – permissible if 79,99 € was actually the lowest price  in the last 30 days
•   Not permitted: advertising discounts on your own offer prices without  stating the lowest price in the last 30 days. 

Conclusion: transparency creates trust

While Section 11 of the PAngV poses documentation and compliance challenges for companies, it also offers an opportunity for fair competition. 

The most important finding is that every advertised price reduction must state the lowest price of the last 30 days. Anyone advertising discounts must be able to demonstrate price trends. Appropriate documentation is therefore mandatory.

Simply stating an RRP does not constitute a price reduction under the terms of the regulation and does not trigger any obligation under Section 11 of the PAngV. However, it is essential to distinguish clearly between RRP information and actual price reductions. If consumers are given the impression that the advertised price is a reduction based on the reference to the RRP, the lowest price of the last 30 days must also be stated.