News item | 06-12-2022 | 09:30
From 1 January 2023, misleading consumers with false price reductions both online and in stores will be a thing of the past. A seller can then no longer raise the price of a product or service for a short time, then lower the price and then falsely present this ‘from-for’ price as an offer or a significant discount. The ban follows from a General Administrative Order (AMvB) of Minister Micky Adriaansens of Economic Affairs and Climate (EZK).
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 ‘from before’ 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 measure, sellers can of course still set their own prices and offer real ‘from before’ discount campaigns.”
The new rules stipulate that the original price from which the discount is deducted (the ‘from price’) must be the lowest price the seller has quoted 30 days prior to the listing. The regulations stem from a European decision to use this method of price indication everywhere in the EU.
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. The seller may continue to refer to the price for which the first reduction was announced for a maximum of three months.
Products that have been on the market for less than 30 days will soon also be excluded. After 30 days, the exception for the product concerned expires. The government opts 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 30 days.
Exceptions 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 purpose, the seller may use as ‘from price’ the price that applied immediately prior to the price reduction. This includes perishable foodstuffs such as fish, meat, dairy products, fresh fruit and vegetables, which are only available for a few days and whose prices can change quickly. It is impractical for sellers to track the price of these during that time. Moreover, from a sustainability point of view, it is important that price reduction rules help to prevent food waste.
The Netherlands Authority for Consumers and Markets (ACM) will supervise this from 1 January 2023 after the introduction of the measure and will enforce in the event of violations.