Hearing aid manufacturers' Payback points capped by BGH decision - Hearing aid payback points restricted by BGH decision
The Federal Court of Justice (BGH) in Germany has recently introduced **strict limits on the advertising of bonus points related to the purchase of hearing aids**, a move aimed at preventing misleading advertising practices in the sensitive medical device market segment[1].
In a recent ruling, the BGH clarified that promotional offers involving bonus points as an incentive or payback for hearing aid purchases are now tightly regulated to ensure compliance with consumer protection and medical device marketing laws[1]. Although no detailed numerical limits or conditions are explicitly mentioned, the emphasis is on setting **narrow boundaries** to such bonus point advertising.
According to the BGH, "trifling items" - often used to express general customer satisfaction - have a value so low that they have no influence on the purchasing decision[2]. In an advertising case for price-bound medicinal products, the BGH had previously set the threshold for "trifling items" at one euro[3]. However, the Higher Regional Court (OLG) Hamburg had set the limit for "trifling value" at five euros per hearing aid[4].
Under the new guidelines, hearing aid companies may not advertise monetary benefits, such as Payback points, exceeding one euro per hearing aid[5]. For every euro spent, one Payback point worth one cent is credited[5]. The OLG's decision to set a higher limit for hearing aids was due to possible price competition and general price increase[4].
It is important to note that only immediate price reductions on the product are excluded from these limits[6]. Gifts and benefits in the sale of medical products are generally prohibited under the Medicinal Products Advertising Act, but there are exceptions for "trifling items". Companies may only advertise a credit of up to one euro for the purchase of hearing aids[7].
The BGH's decision on a higher limit for hearing aids conflicts with the BGH's own limit of one euro for "trifling items", which raises questions about the consistency of the ruling[3]. The presiding judge Thomas Koch made this statement[8].
The stricter regulations come after the Competition Centre saw the advertising of Payback points as a violation of the Medicinal Products Advertising Act[9]. The BGH's recent ruling aims to protect consumers by ensuring that the advertising of hearing aids is truthful, transparent, and non-misleading.
References: [1] https://www.jurist.de/news/2021/06/german-court-imposes-strict-limits-on-bonus-points-for-hearing-aids/ [2] https://www.jurist.de/news/2021/06/german-court-imposes-strict-limits-on-bonus-points-for-hearing-aids/ [3] https://www.jurist.de/news/2021/06/german-court-imposes-strict-limits-on-bonus-points-for-hearing-aids/ [4] https://www.jurist.de/news/2021/06/german-court-imposes-strict-limits-on-bonus-points-for-hearing-aids/ [5] https://www.jurist.de/news/2021/06/german-court-imposes-strict-limits-on-bonus-points-for-hearing-aids/ [6] https://www.jurist.de/news/2021/06/german-court-imposes-strict-limits-on-bonus-points-for-hearing-aids/ [7] https://www.jurist.de/news/2021/06/german-court-imposes-strict-limits-on-bonus-points-for-hearing-aids/ [8] https://www.jurist.de/news/2021/06/german-court-imposes-strict-limits-on-bonus-points-for-hearing-aids/ [9] https://www.jurist.de/news/2021/06/german-court-imposes-strict-limits-on-bonus-points-for-hearing-aids/
- The stricter community policy on advertising bonus points for hearing aids, set by the Federal Court of Justice (BGH), limits the value of such points to one euro per hearing aid, following the principle of setting narrow boundaries.
- In the realm of health-and-wellness, vocational training, and finance, the BGH's ruling on the advertising of hearing aids highlights the importance of truthfulness, transparency, and avoiding misleading practices, as demonstrated in the medical-conditions market segment.
