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 indeed 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 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.

In fact, it is likely a sensitive issue for many Austrians, as they are still confronted with relatively strong inflation in the food sector, and the share of promotions in the food retail sector is considered particularly high in EU comparison. 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 - by almost 90 percent.

(APA/Red)

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