On unit price indication for cosmetic products

The Price Indication Ordinance (PAngV) provides in certain cases that the retailer must provide unit price information in addition to stating the final price. However, there are exceptions to the requirement for unit price indication. These include, inter alia, cosmetic products that are intended exclusively for colouring or beautifying the skin, hair or nails. Does this also include an anti-wrinkle cream or a hair growth serum? This was a matter the Higher Regional Court (OLG) Celle had to decide.

A company advertised cosmetic products on its website without providing the unit price of each product. The products in question were a hair growth serum and an anti-wrinkle cream.

The missing unit price information was objected to by another company as being contrary to competition law.

The advertising company took a different view. It was of the opinion that this was an exception case to the unit price indication requirement explicitly regulated in the PAngV.

The court's decision

The OLG Celle rejected the exception condition of the PAngV injudgment of 23.03.2017 – Az. 13 U 158/16and thereby reversed the first instance judgment of the LG Hannover.

The exception condition of the PAngV includes cosmetic products that are intended exclusively for colouring or beautifying the skin, hair or nails. According to the court's view, a hair growth serum and an anti-wrinkle cream do not fall within this category.

The hair growth serum is a cosmetic product whose effect only occurs after regular application over an extended period.

The anti-wrinkle cream has, in addition to its beautifying effect, also a skincare function.

Conclusion

The exception condition for cosmetics applies only to products that achieve a short-term change in appearance and do not also aim at the care of skin, hair or nails, which is why in particular for anti-wrinkle creams or hair serums, unit price information should not be omitted.