Is a temporary price increase allowed?
Such practices, in which the selling price is temporarily increased, have been prohibited by European regulations since Jan. 1, 2023. The purpose of these rules is to prevent sellers from being able to mislead consumers with discount offers. The new rules therefore stipulate that in the case of a discount promotion, a seller must set the discount against the lowest price of the product in the past 30 days.
Example authorized temporary price increase
For example, if a seller wants to launch a discount promotion on June 1, the discount must be measured against the lowest price at which the seller sold the product during the 30-day period preceding it.
In the old situation, for example, a seller could raise the price of a product from €80 to €100 two weeks before the discount promotion and then offer the product according to the promotion: "From €100 now for €70."
Under the new rules, the lowest price in the previous 30 days must be included, and thus the promotion becomes "From €80 now for €70." The rule applies not only to discount offers for specific products, but also to general price reductions, such as "20% off all products this weekend only." For each product, this promotion will have to include the lowest price in the past 30 days.
There are three exceptions to the main rule that the discount must be set against the lowest price in the past 30 days.
Exception 1: products with limited shelf life
With respect to products that spoil quickly, the sales price immediately prior to the price reduction may be indicated. This is because it is not practical to keep track of the price during the short period that such a product can be offered. It is also desirable from a sustainability perspective that these products can still be sold at a substantial discount shortly before the expiration date.
Exception 2: progressive discounts
Second, an exception exists for the situation where an ever-increasing, progressive, discount is used. Consider a discount of first 10%, then 20% and then 30%. In this situation, the seller may continue to quote the price at which the first discount applied for up to three months. However, the first price must be the price that applied during a 30-day period prior to the first price reduction.
Interruption incremental price increase
If the sequence of price reductions is interrupted by an interim price increase or if three calendar months have passed since the first price reduction, the general rule applies again.
Suppose a 10% discount is given prior to the St. Nicholas period and another 10% discount is given just prior to the Christmas period. In that case, the discount given prior to the Christmas period must be deducted from the price of the Sinterklaas discount. After all, because the discount period has been interrupted, the general rule applies again and the price, including Sinterklaas discount, will probably be the lowest price applied during the past 30 days.
Exception 3: new products
The last exception applies with respect to products that have been in the store for less than 30 days or offered on an online store . In this case, a seller may include the lowest selling price in a period to be specified by the seller.
The idea behind this is that this way sellers are not forced to offer the product at full price first for 30 days before they can run a discount promotion that lists the full price as the previous price. Please note that this exception does not apply if a seller has previously sold a particular product, removed it from the range and will later re-offer it.
Is advertising under time constraints or with limited availability allowed?
Advertising with the text "Almost sold out" or a countdown timer is in principle permitted, but must be truthful . If they are not, they are misleading, and therefore not permitted. Consumers must be able to trust the information provided and not be pressured by false urgency or scarcity.
For example, it is not permissible to advertise with "10 pieces still available" when this is not the case. Also, use of an expiring timer is not allowed, when the offer continues after its expiration.
In conclusion, advertising with discounts is subject to a number of rules. With regard to from/for prices, for example, you must keep good records of the price of the products. In addition, it is important to always be clear and transparent regarding the discounts given.
