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How to calculate and present price discounts - explanations of the President of UOKiK
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- Entrepreneur, do you inform about the promotion? From 1 January this year you are obliged to provide the lowest price from 30 days before the discount is introduced.
- It follows from the inspection and monitoring of the market carried out by UOKiK that sellers often make mistakes in determining discounts.
- Who, when and how must quote the lowest price from 30 days prior to the discount? Check the explanations of the President of UOKiK.
From 1 January of this year, entrepreneurs who organise discounts must report the lowest price from 30 days preceding the promotion. And it is from this price that they have to calculate possible benefits, e.g. “you save PLN 50.00” or “-20%”. The new rule is intended to prevent price juggling - raising prices just before a sale to give the impression that the discount is more attractive than it actually is. It is also intended to make it easier for consumers to compare prices and show whether the discount is beneficial to them.
- From our observations and inspections so far, as well as questions from entrepreneurs, it appears that the market is struggling with this provision. Not all of those who should, correctly calculate and quote the lowest price of the 30 days prior to the announcement of the discount, and even if they do - it is in an illegible and misleading way for consumers. We therefore felt it was necessary to issue an explanatory note in which we show, with examples, good and bad practice in this area – says Tomasz Chróstny, President of UOKiK.
The need to issue a clarification was also confirmed by consumer feedback, particularly that received on the UOKiK’s educational account on Instagram. With non-transparent display of promotions, consumers have the problem of what to calculate the benefits of the promotion from.
How to present promotional prices?
Explanations of the President of UOKiK concerning information on price discounts are addressed to entrepreneurs. Practical guidance on how to solve the problems that arise will be found in both large retail chains and large e-commerce companies, as well as micro, small and medium-sized enterprises.
The document specifies who must make the lowest price from 30 days before the discount visible and in what situation. The obligation applies to all entrepreneurs who promote the goods or services on offer by showing or suggesting a discount. This may be, for example, a notice of sale, a slogan “save”, a higher price crossed out. If a shopping platform or price comparison website provides tools for retailers to display price discounts, it must also ensure that the lowest price from 30 days before the discount is displayed appropriately and correctly.
Entrepreneur, reach out for clarifications and find out in which situations you must present the lowest price from 30 days before the discount:
· in case of last-minute offers,
· in case of conditional sales,
· in case of incomplete goods,
· in case of goods at the end of their expiry date,
· in loyalty programmes.
→ Check the explanations of the President of UOKiK.
The information about the lowest price from 30 days before the discount should appear wherever the entrepreneur announces discounts for a specific product, i.e., for example, in an advertisement, next to the product on a shelf, on a display, in the chain’s newsletter, in a conditional sale, in a loyalty programme, in the search results of an online shop and on a specific product card. At the same time, we have seen in recent months the use of loyalty programmes or bundled offers to circumvent the obligation to quote the lowest price from 30 days before the discount. For example, information about a discount that is only available after activation of a “coupon” in a mobile app does not exempt entrepreneurs from showing this price.
The lowest price 30 days before the discount must be clearly legible and clearly described. It must not be hidden, for example, by using a poorly visible font. It is not acceptable to omit the information what this price means, nor to use ambiguous terms such as “reference price”, “omnibus price”, “was”. In some situations, in mobile applications, where space is very limited and the full name “lowest price from 30 days before discount” does not fit, it is conditionally acceptable to use the abbreviated explanation “lowest price”. → For details and examples of correct solutions, see the explanations of the President of UOKiK.
In addition to the obligatory lowest price from 30 days before the discount, the entrepreneur may additionally inform the consumer about another price, e.g. the regular price or the price immediately preceding the discount. However, this must not mislead the consumer and divert their attention from the stated lowest price of the goods from 30 days before the reduction. If the seller shows the price benefit from the regular price, e.g. in percentage terms, it must similarly show it from the lowest price from 30 days before the discount.
→ More examples are found in the explanations of the President of UOKiK.
- When encouraging a purchase with a reduced price, the consumer must be given full information that will enable them to assess whether the promotion is actually beneficial. If the entrepreneur has a problem with determining or correctly presenting the lowest price from 30 days before the discount, he may use other forms of promotion referred to in the explanations – says Tomasz Chróstny, President of UOKiK.
What sanctions?
Since the beginning of the year, UOKiK, together with the Trade Inspection Authority, has checked the practices of 12 retail chains and over 50 online stores related to marking the lowest price from 30 days prior to the discount and calculation of the benefit.
- We have noticed various irregularities – from not placing this price at all by assigning misleading names (e.g. reference price) to over-exposing the regular price or calculating benefits exclusively from it. In the course of our investigations and requests addressed to entrepreneurs, we have eliminated many cases of non-compliance. The explanations we have prepared are intended to assist in the interpretation of the new rules and, as a result, to guarantee consumers clear, reliable information on the lowest price from 30 days before the discount – says Tomasz Chróstny, President of UOKiK.
For a breach of the provisions on prices, the Trade Inspection Authority may impose a penalty on the entrepreneur in the amount of up to PLN 20,000.00, and if this occurs three times a year after the first infringement, the penalty may amount to PLN 40,000.00. In turn, the President of UOKiK, in the event of a breach of collective consumer interests, may impose a penalty of up to 10% of turnover per company and up to PLN 2 million per manager.
Webinar for entrepreneurs
Entrepreneur, do you want to learn more about the correct marking of price discounts? Take part in the webinar: “On discount pricing - for entrepreneurs” prepared by UOKiK and the ProPublika Foundation. Katarzyna Araczewska, deputy director of the Department for the Protection of the Collective Interests of Consumers, will be interviewed by Agnieszka Kopacz-Domańska. The Webinar will take place on Thursday, 18 May at 1 p.m. We encourage you to send questions earlier to our expert. We are waiting for them until Sunday 14 May at: [SCODE]b21uaWJ1c0B1b2tpay5nb3YucGw=[ECODE].
Link to the meeting: infoliniakonsumencka.pl/live/
Transmission also on the channel of the ProPublika Foundation to YouTube
The recording will be available at: infoliniakonsumencka.pl/webinary-podcasty/
→ For information on the new consumer legislation not only on price discounts, but also, for example, on complaints or sales at shows, see prawakonsumenta.uokik.gov.pl
Consumer Support:
Phone: +48 801 440 220 or +48 222 66 76 76 – consumer helpline
E-mail:[SCODE]cG9yYWR5QGRsYWtvbnN1bWVudG93LnBs[ECODE]
Consumer Ombudsmen – in your town or district
Attached files
- Press release (1,32 MB, docx, 2023.05.09)
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