The EU Commission and consumer protection authorities have released the results of a screening (‘sweep’) of online discounts during Black Friday and Cyber Monday sales.
‘Sweeps’ are coordinated by the Commission and carried out simultaneously by national enforcement authorities (from 23 EU Member States as well as Iceland and Norway). The aim of the 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.
The 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 price of reference must be the lowest price applied in the past 30 days.
“Black Friday and Cyber Monday offer great opportunities for both businesses and consumers”, said EC executive vice-president Henna Virkkunen: “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.”
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 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, 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.
Consumer Protection Cooperation Network
