• Alleged discounts, false consumer opinions online, incorrectly marked paid ads in search results?
• The President of UOKiK examines how the market adapted to new regulations resulting from implementation of the Omnibus directive.
• First on the agenda is information about discounts - inspections by the Trade Inspection Authority are commencing in 6 retail chains, and approx. 40 entrepreneurs received notifications in regards to possible irregularities.

On 1 January 2023 new regulations resulting from the Omnibus directive will become effective which strengthen consumer protection. The most important of them is the requirement of transparent information on discount, clear rules of placing offers in search results, and prohibition on suggesting that published consumer opinions are genuine, if the entrepreneur failed to introduce mechanisms to ensure their trustworthiness. The regulations impose new information obligations on entrepreneurs operating online such as providing a phone number, informing whether published opinions are verified and in what manner, and in case of shopping platforms - indicating whether a given offer originates with an entrepreneur or a natural person.

- We’ve been monitoring practices of implementing the new regulations from the very beginning. We can already see that not all entrepreneurs are following them. Many irregularities we noticed concern price visibility, including the lowest one from 30 days prior to the discount. Together with the Trade Inspection Authority, we will ensure that the law is observed - and it will benefit the consumers. We’re launching inspections in retail networks; we also motioned for explanations from around 40 entrepreneurs operating in e-commerce and are planning further inspections in brick and mortar shops - says Tomasz Chróstny, President of UOKiK.

Price reductions – new principles

Starting on 1 January 2023 any entrepreneur that announces a discount or sale must, in addition to the current price, state the lowest price from 30 days prior to the discount or sale in a visible place near the discounted item. This information should be unambiguous, clear, and enable price comparison. The provisions concern physical and online sales, as well as advertisements in television or radio.

- Price transparency for discounts gives consumers a real benchmark when making purchase decisions. Thanks to a clear and reliable price information, price per unit, and lowest price in the last 30 days, consumers will know if the offer of this particular entrepreneur is indeed favourable. Knowledge of the lowest price in the last 30 days will prevent consumers from being taken advantage of by fake discounts that result only from dishonest entrepreneur practices - says Tomasz Chróstny, President of UOKiK.

Communicating discounts to consumers may take different forms. However, regardless of the chosen manner of presenting the discount - whether it is a percentage or fixed sum, discount by VAT amount, crossing out, or stating both the regular and discounted price, placing a slogan suggesting a sale - the lowest price of the goods or services from the last 30 days needs to always be stated. This pertains also to discounts for particular items as well as a general discount announcement in regards to the entire stock or a part thereof.

Exceptions include:

• perishables with a short expiry date - in such a case, the seller needs to show both the current price as well as that from before applying the discount;
• products on offer for less than 30 days - provide the lowest price since the product started to be sold before the discount.

There is also no obligation to state the lowest price from before the discount if neither a discount nor sale is announced and the entrepreneur simply lowers the regular price. Similarly, slogans promoting sales offers through comparisons being regular marketing declarations (e.g. best, lowest prices) and interconnected offers (e.g. multi-item) are not subject to the new regulations.

Discounts – observed irregularities and inspections

UOKiK inspected approx. 40 websites of entrepreneurs operating in e-commerce in various industries: clothing, cosmetics, footwear, sporting goods, electronics, Internet platforms. Motions were sent to each of those entities asking for their position in regards to the correctness of implementation of the lowest price regulations. So far, inquiries were sent to entrepreneurs operating brands such as: AliExpress, Allegro, Amazon, Avans, Biedronka, Bytom, C&A, CCC, Ceneo, Decathlon, Douglas, Electro, Empik, Eobuwie, Euro RTV AGD, H&M, Hebe, Intersport, Jysk, Kappahl, Lidl, Martes, Media Markt, Media Expert, Notino, Orange, Play, Plus, Recman, Reserved, Rossman, Sephora, Shopee, Smyk, Tchibo, T-Mobile, Vistula, Wittchen, Zalando, Zara.

Reservations of the President of the Authority were raised in connection with i.a.:

• Provision of the current sales price and crossed out price without specifying what the crossed out price actually is.

• Provision of the current sales price and crossed out price, where the explanation that the crossed out price is the lowest price of the item in 30 days before the discount is shown only after it is expanded.

• Using other reference values when presenting the discount (crossed out price) excluding the lowest price from 30 days before the discount.

• Calculating the amount of discount (e.g. 20%, PLN 150) in connection to the last standard price of an item and not the lowest one from the last 30 days.

• Using phrases other than “lowest price in 30 days before the discount”, i.e. “reference price”, “previous/last lowest price”, “price from 30 days before discount”.

• Presenting information on the lowest price in place within 30 days before the discount in an illegible manner: font, colours, contrast.

In his motions, the President of UOKiK called entrepreneurs to provide explanations and change questionable practices. If they fail to comply, further actions may be taken, including accusations of violating the collective interests of consumers.

Regardless of actions towards e-commerce, under UOKiK preliminary investigation, inspections by the Trade Inspection Authority in brick and mortar shops will commence. Initially, inspectors will check 6 retail networks: Biedronka, Dino, Kaufland, Lidl, Netto, and Żabka. In subsequent stages, inspections are also planned for other stores. During inspections under investigation inspections by the President of UOKiK, TIA inspectors do not impose financial penalties.

In case of ascertaining the breach of collective consumer interests, the President of UOKiK may impose a penalty of up to 10% of turnover per company and up to PLN 2 million per manager.

Further actions of UOKiK

- Inspections on the manner of presenting discounts in stores is the first stage of our action. We’ll also look into the way entrepreneurs provide information on lower prices for services - the new law imposes the same obligation as with selling goods. In case of providing tools for sellers to present discounts, retail platforms need to ensure the tools are compliant with binding law. Providing solutions that hinder sellers in presenting discounts properly may be construed as an unfair market practice - explained Tomasz Chróstny, President of UOKiK.

The Authority will also soon be looking into:

• whether and how do entrepreneurs operating online, who provide consumer opinions, inform consumers on the manner of verifying their reliability (if they do not conduct such verification, they should also inform the consumers of the same);
• whether and how retail platforms provide information on the main parameters deciding on the order the products appear in search results, as well as whether and how they disclose which offers are paid advertisements or were placed higher due to a payment;
• whether and how the platforms provide information on the status of the person offering goods or services - whether it is an entrepreneur or private individual; in the latter case, they also have the obligation to provide information on not applying consumer protection laws;
• whether entrepreneurs operating online provide a phone number allowing consumers to effectively contact them.

How to appropriately provide information on discounts?

The Seller should present the lowest price in 30 days prior to the discount in a legible manner which will not raise any doubts with the consumer. The lowest price may be crossed out (provided it remains legible). Next to the price indicated as the reference price, the entrepreneur should indicate it as the lowest price in the last 30 days prior to the discount. The practice of presenting this message after expanding the link or in a much smaller font than the lowered price, using an illegible colour or low contrast is considered improper. Information on the lowest price should be presented in direct vicinity of the current price.

If the entrepreneur lowers the price more than once per 30 days, they can also inform the consumer about previous prices. It should not however, misguide the consumer and divert their attention from the stated lowest price in 30 days prior to the discount. Example: Providing proper information on additional prices could be as follows: “PLN 80 instead of PLN 100” (lowest price in 30 days prior to the discount). Our regular price, outside discount periods, within the last X days was PLN 120 (in the same font).

If the seller provides information on lowering the price, it should also refer to the lowest price from 30 days prior to announcing the discount, regardless of whether it is expressed as a percentage or fixed amount. Examples: if the slogan is “50% off” and the lowest price in 30 days prior to publishing information on the discount was PLN 100, the seller will have to provide PLN 100 as the reference price used to calculate the 50% discount, even though the last price of the item was different.

Customer loyalty programmes, such as rebate cards, or coupons enabling the consumer to take advantage of a discount, are excluded from the requirement to provide information on the lowest price in 30 days prior to the discount. However, they need to refer to actual personalised discounts (e.g. birthday discounts). If, however, the ability to make a cheaper purchase is available generally, or to a part of the customer base of a given company, providing the lowest price from 30 days prior to the discount will be required. Example: the consumer visits the seller’s website and sees a generally available information that after entering a certain code, the price will be lowered - in this situation, the seller needs to ensure that the “previous” price of all discounted items was the lowest generally available price in 30 days prior to the discount.

If the entrepreneur sells its goods through various channels (e.g. in brick and mortar shops and online) and provides information on lowering the price, it has to provide the lowest price binding within 30 days prior to the discount adequate for individual sales channels.

Consumer Support:

Phone: +48 801 440 220 or +48 222 66 76 76 – consumer helpline
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Consumer Ombudsmen – in your town or district

Additional information for the media:

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