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Do online retailers have to state in advertisements that shipping costs apply – or is it sufficient to state this in the store? What if there is not enough space in the advertisement?
When the click becomes expensive
Online retailers invest a lot of money in advertisements to draw customers’ attention to their products. But where does the obligation to provide information about additional costs begin? In the summer of 2024, a retailer advertised a disinfectant in a search ad – including a specific price. There was no reference to shipping costs. It was only on the product page in the online store that the words “plus shipping” were added, followed by a shipping cost of 3.99 euros. A competition association considered this to be misleading and took legal action under competition law.
Background: Price information must be clear and complete
The Price Indication Regulation (PangV) is intended to ensure that consumers can easily compare prices and make informed purchasing decisions. Among other things, it therefore obliges companies to indicate total prices – i.e. all components that are relevant to the final price, including shipping costs.
Clarity is particularly important in environments where several providers appear with prices next to each other – for example in Google ads, product sliders or price search engines. Those who only state the price of the goods gain an unfair advantage over those who show the correct total price. This is because users compare at a glance – and only see which price appears to be the lowest at first glance.
The decision: Shipping cost information belongs in the ad
The Bochum Regional Court ruled Judgment of 25.03.2025 – Ref. 18 O 13/25 that the online retailer should not have placed its ad in this way. The lack of reference to shipping costs constituted an unfair commercial act. The decisive factor was that the ad appeared in an environment that allowed the quick price comparison of several products – similar to a price search engine.
In this case, the shipping costs added to the purchase price may not only be stated on the provider’s own website.
The court thus consistently transfers the principles developed by the Federal Court of Justice on price search engines to other online advertising formats in which price comparison is obviously the main focus.
The judges saw several reasons for this strict view. For example, the omission of the shipping costs notice was a significant lack of information. Consumers must not only find out after clicking that further costs will be incurred. In addition, the lack of information on shipping costs creates an attraction effect due to the seemingly lower price at the expense of those retailers who provide transparent information. Lack of space in advertisements does not justify an infringement. If there is no space for mandatory information, it is simply not permitted to provide price information in this format.
What companies should consider now
The ruling once again makes it clear that companies that advertise prices online must also provide information on shipping costs. This applies not only to price search engines, but also to search ads, product feeds, social media campaigns or widgets with a price comparison character.
This means: If a price is quoted, the note “plus shipping costs” must also appear – if possible with a clear link to the shipping costs overview or even with the specific amount.
Lack of space for technical reasons is no justification. In such limited advertisements, advertising with prices should be avoided where appropriate.
Received a cease and desist letter?
How to react
You are best advised to
cease and desist letter!
A cease and desist letter, e.g. for infringement of competition law, industrial property rights or copyright, should always be taken seriously, as it can have considerable legal and financial consequences.
Timely and professional advice is crucial in order to minimize risks and develop the right strategy.
- Check cease and desist letter: Have the cease and desist letter legally checked. Not every cease and desist letter is justified, formally correct and abusive cease and desist letters are unlawful.
- Observe the deadline: Be sure to respond within the set deadline to avoid further legal action such as an injunction or a lawsuit.
- Check the cease-and-desist declaration: Do not sign a pre-formulated cease-and-desist declaration without legal advice. It could be too far-reaching and lead to considerable and lasting disadvantages. Once a cease-and-desist declaration has been signed, it is almost impossible to get rid of it and can result in considerable follow-up costs in the form of high contractual penalties.
- Strategy: Regardless of whether the cease and desist letter is justified or not, you should consider the right strategy for responding to the cease and desist letter with professional support. Many aspects play a role here. For example, there may be formal errors or the submission of a cease-and-desist declaration may involve incalculable risks.
Conclusion
The ruling of the Bochum Regional Court makes it clear that price information without a clear reference to shipping costs is generally anti-competitive and can quickly lead to cease and desist letters .
Companies should therefore check their ad formats and ensure that the mandatory information already appears on the homepage.
In short: No price advertising without a shipping cost note – even if there is a lack of space!
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