News item | 29-04-2022 | 16:33
Deception of consumers with false price reductions is a persistent phenomenon both online and in stores. A seller briefly raises the price of a product or service, then lowers it, and then falsely presents this “for-for” price as an offer or a significant discount. The Council of Ministers has approved a proposal for a General Administrative Order (AMvB) from Minister Micky Adriaansens of Economic Affairs and Climate (EZK) to legally tackle misleading consumers with false price reductions.
Minister Micky Adriaansens (EZK): “An attractive price reduction that actually turns out not to be that at all is misleading. Many consumers have had to deal with false ‘for’ discount promotions. The fact that we are going to do something about this is also good news for entrepreneurs who also had to deal with unfair competition as a result. And with this proposal, sellers can of course still set their own prices and do real ‘before’ discount campaigns.”
The new rules state that the original price that the discount is deducted from (the “from-price”) must be the lowest price the seller has quoted thirty days prior to the offer. The regulations are the result of a European decision to use this way of price indication everywhere in the EU from mid-2022.
Successive price reductions remain possible
The government has opted to make use of an exception for successive price reductions in the Netherlands. For example, a discount on a piece of clothing that is first 20 percent, then 30 percent and then 50 percent. In doing so, the seller may continue to refer to the price at which the first reduction was announced.
Products that are on the market for less than thirty days will also be exempted in the future. After thirty days, the exception for the product in question expires. The government has opted for this exception because it is beneficial for both sellers and consumers if new products can be offered at a discount within a period of thirty days.
Exception for products that spoil quickly or have a limited shelf life
Also excluded are products that spoil quickly or have a limited shelf life. For this, the seller may use the price that applied immediately prior to the price reduction as the ‘of-price’. This includes perishable foods such as fish, meat, dairy, fresh vegetables and fruit that are only offered for a few days and whose price can change quickly. It’s impractical for sellers to keep track of their price during that time. Moreover, from a sustainability point of view, it is important that rules for price reductions help to reduce food waste.
The Council of Ministers has agreed to send the AMvB to the Council of State for advice. The text of the measure and the advice of the Council of State will be made public upon publication in the Official Gazette. After the implementation of the measure, the Authority for Consumers & Markets (ACM) will monitor this and will enforce violations.