Austria’s Social Affairs Ministry has filed lawsuits against four major supermarket chains—Billa, Spar, Hofer, and Lidl—over alleged lack of transparency in discount pricing. The cases were brought through the consumer watchdog VKI (Association for Consumer Information).
The ministry claims the retailers failed to comply with the requirement to display the lowest price from the past 30 days when advertising discounts. Without this reference, promotions may mislead customers, making savings appear larger than they are.
The legal action is based on Austria’s Price Indication Act, which aims to prevent artificially inflated discounts. For instance, if a product goes on sale multiple times within a short period, the later discount must be compared to the initial lowest price. Using a raised “normal price” as the reference can falsely suggest major savings.
Social Affairs Minister Korinna Schumann (SPÖ) said the lawsuits, which seek injunctions, are intended to enforce “clear and fair rules.” She emphasized that price promotions must be “understandable and fair for everyone,” especially as households continue to face high food prices.
The lawsuits come amid growing political debate over grocery costs. Finance Minister Markus Marterbauer (SPÖ) recently called for a discussion on potential interventions in Austria’s food market, and SPÖ leader and Vice Chancellor Andreas Babler said such market measures remain on the table.
Austria’s food market is dominated by a handful of large retailers, with four chains controlling nearly 90 percent of sales. The country also ranks among the EU’s leaders in the share of promotional sales, making discount transparency a sensitive issue for consumers still struggling with inflation.
The supermarkets responded cautiously, citing a lack of information about the lawsuits. Spar and Billa’s parent company Rewe both told APA they could not comment because they had not yet received the filings. The Austrian Retail Association also said retailers comply with some of the strictest pricing laws in Europe and criticized the fact that the lawsuits had not been formally delivered to the companies. Hofer and Lidl have not yet issued statements.
