Can a company increase prices without notice?
July 25, 2022 | 40,00 EUR | answered by Georg Sauer
Dear Competition Law Attorney,
I am reaching out to you with a question regarding a price increase by a company with which I have a business relationship. Lately, I have noticed that the prices for the products I source from this company have suddenly and without any prior notice been raised. This price increase has taken me by surprise and has left me feeling uncertain, as I was not expecting it and had no opportunity to prepare for it.
As a long-time customer of this company, I am concerned about the legality of such a price increase without prior notice. I am wondering whether the company is even allowed to raise prices without advance notice, and whether this may potentially be in violation of current competition law.
I understand that in the business world, it is common to adjust prices to offset cost increases. However, I believe that providing adequate advance notice would allow customers to prepare and potentially explore alternatives.
Therefore, my question to you as an expert in competition law: is it legally permissible for a company to implement a price increase without prior notice? Are there any legal regulations or consumer protection measures that could apply in this situation to protect me as a customer? What legal steps could I take in this case to address the unannounced price increase?
I thank you in advance for your expert advice and support.
Sincerely,
Isabel Keck
Dear Mrs. Keck,
Thank you for your inquiry regarding the price increase of a company with which you have a business relationship. It is understandable that you are concerned about the sudden and unannounced price increase and wondering if it is legally permissible and if you as a customer are protected.
First and foremost, it should be noted that companies generally have the right to adjust their prices to offset cost increases or improve their profit margins. However, they must also comply with legal regulations and consumer protection rules.
In Germany, competition law, in particular the Act against Unfair Competition (UWG), regulates the rules for fair competition and consumer protection. An unannounced price increase could potentially violate the UWG, especially the prohibition of misleading business practices (§ 5 UWG).
An unannounced price increase could be considered misleading, as it could mislead customers regarding pricing and product expectations. Customers have the right to be informed about price changes in order to adjust and potentially explore alternatives.
If you believe that the unannounced price increase violates competition law, you may consider taking legal action. Initially, you could request the company to withdraw the price increase or provide a reasonable justification. If the company does not respond, you could file a complaint with the relevant consumer protection authority.
It is advisable to seek legal advice from an expert in competition law in such cases to clarify your rights and options. I am available for a detailed consultation and to support you in enforcing your rights as a customer.
I hope I have comprehensively answered your question and am available for any further inquiries.
Best regards,
Georg Sauer
Competition Law Attorney
