A regional appellate court in Stuttgart has dismissed a lawsuit filed by the Federation of German Consumer Associations (VZBV) against Lidl concerning its “Lidl Plus” loyalty program. The decision, announced Tuesday, centers on the program’s advertising, specifically the assertion that app usage is “free.
The VZBV had challenged Lidl’s practice of characterizing the app as free, arguing that consumers effectively pay for its use with their personal data. The association contended that Lidl had a legal obligation to disclose a “total price” reflecting this data exchange.
The court’s 6th Civil Senate found the lawsuit to be without merit, stating that Lidl’s failure to specify a “total price” was not objectionable. The court reasoned that the app’s functionality did not require a monetary payment. According to both German and European legal interpretations, a “price” is fundamentally understood as a sum of money, not a non-monetary consideration. The obligation to disclose a total price serves to protect consumers from hidden costs associated with financial transactions, rather than obligating disclosure of how data is used.
Furthermore, the court determined that labeling the app “free” does not constitute misleading advertising. The term simply conveys the absence of a direct monetary charge. The collection and utilization of data are explicitly outlined within the program’s terms and conditions, ensuring that a reasonable user familiar with those terms would not perceive that no reciprocal consideration was necessary.
The decision allows for a potential appeal to the Federal Court of Justice, which has granted permission for review based on the case’s legal significance.
