EU Judgment on Misleading Car Prices

Citroen Missleading Car Prices EU Judgment

It has become evident that many car manufacturers in Europe mislead consumers about the new vehicle prices. The information provided to consumers when buying automobiles has proven to be a delicate question.

ECJ Judgement on Promotion and Advertising

On July 7th, the EU Court of Justice put down a judgment on a case coming from Germany. It regarded the promotion and advertisement of a specific Citroen C4 motor vehicle[1]. The EU Court ruled that the costs related to the transfer of a newly-bought motor vehicle from the dealer must be included in the final advertised purchase price that is payable by the consumer. This includes costs for the transfer of the vehicle from the manufacturer to the dealer, which are payable by the consumer.

Such costs are to be included in the final price, payable by the consumer. This gives the consumer the opportunity to much more easily compare the final price of the advertised car with the prices of similar motor vehicles and to make an informed choice on the basis of those simple comparisons.

An ECC-Net report from the past year has shown that frauds are common when speaking about cross-border car purchases. It is advisable for the buyer to check that all the car’s documentation is in order, as well as whether  the prices of the offered vehicle are comparable to the prices of similar class models, having analogous features.

 

So, please double check everything when buying a new car!


[1] Case C‑476/14, Citroën Commerce GmbH v Zentralvereinigung des Kraftfahrzeuggewerbes zur Aufrechterhaltung lauteren Wettbewerbs e.V. (ZLW)