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German Court Upholds Penny’s App-Only Discounts and Lets Case Go to Federal Court

The decision signals that claims of age or disability bias need stronger proof to succeed.

Overview

  • The Higher Regional Court in Hamm, which ruled Thursday, rejected the consumer group's bid to block Penny’s app-only discounts.
  • Judges said there was no proven bias based on age or disability under Germany’s equal treatment law because the evidence only showed lower internet use among older people.
  • The panel allowed a revision to the Federal Court, and the consumer group said it will review the reasoning before deciding on an appeal.
  • The decision comes after a March loss for the group in a similar case against Netto, with a related Lidl case scheduled for September at the Brandenburg higher court.
  • Penny welcomed the ruling and said about seven million customers use its app, while the consumer group is also suing over “free” app claims that it says mask a trade in personal data for discounts.