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Misleading announcement "20% VAT free" for voucher instead of discount

24.03.2017

A "20% VAT" discount announcement triggers with the consumer the assumption that a discount in the value of the VAT is included in the gross price and that it is granted immediately upon purchase. In the case of an advertisement of a company for low-cost furniture which are usually purchased spontaneously the court assumes that the consumers do not pay any particular attention to the advertisement or that the consumers do not do any intensive preparation before the purchase. The announcement therefore infringes the prohibition of misleading descriptions. [OGH 24.05.2016, 4 Ob 95/16y]