Background knowledge
PriceDetails-
Regulation
PriceDetails-
Regulation
Price Indication Ordinance
The Price Indication Ordinance (PAngV) is a central set of rules in German consumer law. It ensures that consumers receive transparent and comparable price information when making a purchase decision.
Purpose of the Price Indication Ordinance
The aim of the PAngV is to protect consumers from misleading price information and to increase market transparency. It obliges companies to display prices clearly, comprehensibly and in full. This should make it easier for consumers to compare products and services and make an informed purchase decision. At the same time, the regulation ensures fair competition, as all providers are subject to the same regulations.
In order for someone to be classified as a competitor under competition law, a concrete competitive relationship between the parties involved is required.
The Price Indication Ordinance ensures that prices are transparent and comparable. This allows consumers to benefit from transparent price information in order to make informed purchasing decisions.
Who is affected by the Price Indication Ordinance?
The PAngV is aimed at entrepreneurs who offer goods or services for a fee. This includes both stationary retailers and online providers. Also affected are operators of vending machines, petrol stations, restaurants and other traders who quote prices for their services. Intermediaries who offer goods or services on behalf of a third party are also subject to the provisions of the regulation.
What does the Price Indication Ordinance regulate?
The PAngV stipulates how prices must be presented to consumers. The main regulations include
- Total prices: In principle, prices must include all taxes and other components (e.g. VAT).
- Base price indication: For goods that are offered by weight, volume, length or area, the base price (e.g. price per kilogram or liter) must also be indicated. This should make it easier for consumers to compare prices.
- Additional costs: If additional costs are incurred for the use of a product or service (e.g. shipping costs or service fees), these must be shown transparently.
- Special price indications: For services such as hotel room bookings, energy supply or financial services, there are specific regulations on price indication that are adapted to the respective market segment.
- Advertising: Price information in advertising must also comply with the requirements of the PAngV. This applies in particular to discounts and special offers, where the conditions must be clearly communicated.
Exemptions from the Price Indication Ordinance
Not all price indications are covered by the regulation. The exceptions include, among others:
- Individual price agreements: Prices that are negotiated individually between the supplier and the customer are not subject to the requirements of the PAngV.
- B2B transactions: The PAngV only applies to transactions with consumers (B2C). Transactions between companies (B2B) are excluded.
- Certain services: Exceptions apply to some services for which it is not possible to state a price in advance (e.g. individual consulting services).
- Non-business offers: Persons who offer goods or services occasionally and without the intention of making a profit are not obliged to comply with the provisions of the PAngV.
What happens in the event of violations?
Violations of the PAngV can be punished as an administrative offense. Far more relevant, however, are competition law claims that can lead to claims for injunctive relief, information, damages and reimbursement of costs, which are regularly enforced with cease and desist letters, injunctions and lawsuits.
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