The European Commission and consumer protection authorities from 23 Member States as well as Iceland and Norway, released the results of a sweep of online discounts during Black Friday and Cyber Monday sales.
Ireland’s consumer watchdog, the Competition and Consumer Protection Commission (CCPC), participated in the sweep of over three hundred online retailers. Tackling misleading discounts has been a priority for the CCPC since the introduction of new sales pricing rules, with successful prosecutions brought against a number of retailers including Boots, DID Electrical and Brown Thomas Arnotts.
Sweeps are coordinated by the European Commission 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 selling a range of goods such as cosmetics, fashion, furniture and electrical goods, and found that 30% referenced discounts incorrectly during such sales. Under the Price Indications Directive, when a business announces a discount, the price of reference must be the lowest price applied in the past 30 days. The CCPC has previously published a set of guidelines on sales pricing.
Authorities also assessed other sales tactics that may influence consumers’ purchasing decisions. 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 in 10 of those did not clearly explain what the reference for their price comparison was.
- 18% used pressure-selling techniques, such as claiming a product is running out or using countdown timers. The authorities 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 are added late in the purchasing process, such as shipping or service fees.
Adding items without the consumer’s consent, displaying prices in a misleading way, claiming falsely 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 take action against the businesses concerned.
Helen Martin, Member of the Competition and Consumer Protection Commission (CCPC) said,
“Consumers have a legal right to clear pricing information, and businesses must not mislead consumers into thinking they’re getting a better deal than they really are. Businesses should know that we are monitoring and have successfully taken traders to court for fake discounts. Transparency in pricing allows consumers to shop with confidence and ensures a level playing field for businesses.”
Michael McGrath, Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, said:
“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.”
Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, said:
“Black Friday and Cyber Monday offer great opportunities for both businesses and consumers. However, a great bargain is no excuse to cheat the rules. Consumers expect a fair treatment, whether they are shopping online or offline. Our sweep should act as a reminder: Businesses that treat their customers fairly always benefit.”
