limits the earned credits for hearing aid purchases at the Federal Court of Justice (Bundesgerichtshof BGH)
In a recent development, Amplifon, a leading hearing aid provider, has announced it will continue its partnership with Payback, a popular customer loyalty programme, under the conditions set by the court. The presiding judge in this case is Thomas Koch.
The court's decision sets limits on advertising bonus points for hearing aid purchases in Germany, with the Federal Court of Justice (BGH) playing a significant role. The BGH has previously established a threshold for price-bound medicines at one euro, and this limit also applies to immediate price reductions on hearing aid products.
When it comes to "trifling items", the BGH states that the value must be so low that it has no influence on the purchasing decision. In this case, the BGH had already set the limit at one euro for such items. Companies can only advertise a credit up to a value of one euro for hearing aid purchases.
The Higher Regional Court (OLG) Hamburg set the limit for the decisive "trifling value" at five euros per hearing aid. The Competition Centre views the advertising of Payback Points as a violation of the Medicinal Advertising Act.
Payback Points can be redeemed cashless or converted into goods or vouchers. However, other monetary benefits, apart from immediate price reductions, are not covered by the exceptions. The BGH considers the value to be merely "an expression of general customer satisfaction".
Amplifon, the defendant in the case, has noted the ruling of the Federal Court of Justice and respects the decision of the court. This decision underscores the strict regulations governing the advertising of medical devices in Germany, a country known for its stringent laws in this area, overseen by both national and EU regulations.
The implications of this decision are significant for the hearing aid industry in Germany, emphasising the need for transparency, truthfulness, and avoidance of misleading practices in advertising. As the industry continues to evolve, it is essential to adhere to these regulations to ensure fair and ethical marketing practices.
Other businesses in the health-and-wellness sector may also need to abide by the court's decision on advertising medical devices, given the BGH's strict regulations. The court's decision on Amplifon's partnership with Payback might impact the way medical-conditions related products, like hearing aids, are marketed, requiring careful consideration of the financial incentives offered. Companies should be vigilant regarding the advertisement of monetary benefits, such as Payback Points, to avoid violations of the Medicinal Advertising Act.
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