The European Commission and consumer protection authorities from 23 Member States, as well as Iceland and Norway, released the results of a screening of online discounts during Black Friday and Cyber Monday sales. ‘Sweeps' are coordinated by the EC and carried out simultaneously by national enforcement authorities.
The objective of this sweep was to assess whether discounts and pricing practices during major sales events, such as Black Friday and Cyber Monday, were compliant with EU consumer law. Consumer protection authorities checked 314 online traders and found that 30% referenced discounts incorrectly during such sales. Under the Price Indications Directive, when a business announces a discount, the reference price must be the lowest price applied in the past 30 days.
Out of the traders screened, 36% attempted to add optional items to consumers' baskets. Of those, four in ten did so without clearly requesting consent. 34% displayed price comparisons. 6 out of 10 of those did not clearly explain the reference for their price comparison. 18% used pressure-selling techniques, such as claiming a product is running out or using countdown timers. The CPC identified that more than half of these cases were misleading. A pressure-selling technique can be considered misleading, for example, when its claim of scarcity is fake. 10% used “drip pricing”, where extra fees or added late in the purchasing process, such as shipping or service fees.
Adding items without the consumer's consent, misleadingly displaying prices, falsely claiming that a product is running out, or hiding extra fees until the end of the process are illegal practices under EU consumer law. Following the sweep, national consumer authorities may act against the businesses concerned.
“Trust is essential for both consumers and businesses. Misleading discounts and false ‘promotions’ undermine that trust. EU consumer protection rules strike a careful balance, ensuring a fair market that serves the interests of both businesses and consumers. This sweep gives us a comprehensive view of the market, helping us identify where further action is needed to keep it fair, transparent, and competitive,” said Michael McGrath, Commissioner for Democracy, Justice, the Rule of Law, and Consumer Protection.
The European Commission and consumer protection authorities from 23 Member States, as well as Iceland and Norway, released the results of a screening of online discounts during Black Friday and Cyber Monday sales.
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