End of misleading ‘from-for’ discount: seller is not allowed to raise price quickly | Inland

The trick of shrewd salesmen is perhaps as old as the road to Rome: first increasing the price of a product briefly, and then offering it at a nice discount – making the price exactly the same as in the beginning. The Ministry of Economic Affairs and Climate has announced a ban on these misleading from-before prices, a ‘persistent phenomenon’ that misleads sellers both online and in stores.

‘Many consumers have had to deal with false ‘for-before’ discount promotions,’ reports Minister Micky Adriaansens. ‘Such an attractive price reduction that actually turns out not to be at all is misleading.’ According to the minister, the fact that something is being done about this is not only good news for consumers, but also for entrepreneurs who have had to deal with unfair competition. According to the new general measure, the lowest price applied in thirty days prior to a discount promotion must be the price on which the discount is calculated. So quickly raising prices is pointless.

There are exceptions, however, where the lowest price in the past 30 days does not have to be used. For example, if the discount increases over time: the new, last discount does not have to be calculated on the original price minus the first discount. An exception also applies if a product is on the market for less than thirty days, products that have a limited shelf life are also not covered by the new rules.

The Netherlands Authority for Consumers and Markets (ACM) will monitor compliance with the new rules and will enforce violations. Incidentally, the Netherlands is not the only place where juggling with prices is no longer possible. The decision taken here yesterday in the Council of Ministers is the result of a European decision.

The minister also emphasizes that real discount promotions are still possible.