Study at Hohenheim paved way for twenty-five years of fixed retail prices

In 1991, a groundbreaking study conducted by Dr. Wolfgang Frey at the University of Hohenheim shed light on the complexities of price labeling on pre-packaged food and daily necessities. The study found that many products were lacking basic price labeling, leading to confusion for consumers.

Dr. Frey, who completed his doctorate at the university in 1991, conducted a shopping test with 20 participants to assess the consumer-friendliness of the then-existing price labeling regulations. The test subjects were given 12 tasks to determine the most economical product among various package sizes.

The results were alarming. On average, the participants would have paid 7.5 percent more than the actual cost due to incorrect calculations in price comparison. Only one participant could solve all 12 tasks correctly, but she needed half an hour to do so. The average time taken by the other test subjects to complete the tasks was 19 minutes.

Moreover, the study revealed that only one out of 20 test participants could correctly find the most cost-effective product within 12 individual tests. This overload due to the multitude of different standard package sizes was a significant concern.

The Hohenheim study caught the attention of consumer protection associations, leading to the establishment of a legal basis in 2004 for quick price comparison while shopping. This marked a fundamental change in pricing regulation.

Before the turn of the millennium, shopping at a supermarket usually displayed only the final price, requiring consumers to calculate basic prices themselves due to varying package sizes. However, on September 1, 2000, a legal basis for the indication of the unit price on pre-packaged goods came into force. Today, consumers can usually find both the final price and the basic price - for example, per liter or per 100 grams - on the product's price tag.

On September 1, 2025, the mandatory basic price indication for pre-packaged food and other daily necessities will celebrate its 25th anniversary. This significant milestone is a testament to the impact of Dr. Frey's study and the efforts of consumer protection organizations.

In 1991, a delegation from consumer protection associations visited the University of Hohenheim and emphasized the need for a fundamental change in pricing regulation. Groups such as the German Consumer Association (Verbraucherzentrale Bundesverband) and other regional consumer protection agencies were instrumental in lobbying for the introduction of mandatory base price indication on pre-packaged goods and everyday items.

For media inquiries, please contact Dr. Wolfgang Frey at +49 711 459 22003 or [email protected]. University of Hohenheim press releases can be found at https://www.uni-hohenheim.de/presse (Text: Moormann).