• Failure to provide information on the lowest price applicable in the 30 days prior to a price reduction – these are the allegations levelled by the President of UOKiK against Black Red White, Żabka Nano and Peek & Cloppenburg stores.
• There is a penalty of up to 10% of turnover for the violation of collective consumer interests.
• The promotional price must be accurate and clearly legible – UOKiK reminds.

The President of UOKiK, Tomasz Chróstny, has initiated proceedings against Black Red White, Żabka Polska (Żabka Nano stores) and Peek & Cloppenburg. The proceedings concern the method of informing customers about the lowest price of a product in force during the 30 days prior to the price reduction. This mandatory information on the price label arises from the Act implementing the provisions of the EU Omnibus Directive. Nevertheless, there are cases where promotions are presented incorrectly.

– The right to information is a fundamental consumer right. Customers must know what they are buying and at what price, and when a product is discounted, it is the trader’s duty to state the lowest price in force during the 30 days prior to the reduction. An analysis by UOKiK shows that this is not always the case. Incorrect labelling of price reductions, or a lack thereof, makes it difficult to compare prices and prevents consumers from assessing whether they are dealing with a genuine promotion and whether the purchase represents good value – says the President of UOKiK, Tomasz Chróstny.

Black Red White

The Trade Inspection verified, amongst other things, 454 price labels and information displayed on posters, banners and leaflets in Black Red White furniture chain stores. The irregularities concerned the lack of information on the lowest price applicable in the 30 days prior to the reduction, as well as misleading consumers as to the price benefit they could obtain by purchasing a given product. In reality, consumers were not saving any money, as the promotional price was higher than or equal to the lowest price in the 30 days prior to the reduction. For example: Current promotional price: PLN 989, crossed-out price: PLN 1439. Lowest price in the 30-day period prior to the reduction: PLN 899. The promotional price should be lower than the lowest price in the 30 days prior to the reduction – only then can a genuine price benefit be said to exist. Where this is not the case, the ‘promotion’ message is misleading and unlawful.

Peek & Cloppenburg

The Trade Inspection also inspected 240 price labels in Peek & Cloppenburg clothing stores. The findings were clear: consumers were not informed of the lowest price in force during the 30-day period prior to the price reduction. By law, a price label for a discounted product must indicate both its current price and the lowest price in the 30 days prior to the reduction. Both prices should be presented in a clear and unambiguous manner, leaving no room for doubt and allowing for comparison.

Żabka Nano

The lack of information on the lowest price in the 30 days prior to the price reduction also applies to unstaffed Żabka Nano stores. In advertising materials produced by Żabka Polska concerning the range available in Żabka Nano stores, the promotional price appears in a red circle next to the product image, displayed in a larger font, with the higher price crossed out and marked with an asterisk. The asterisk refers to text in small print at the bottom of the advertisement which, for example, states that the crossed-out price “is the lowest maximum of the prices in force during the 30 days prior to the promotion. The lowest prices in individual stores are indicated on the price labels next to the goods”.

In its advertising materials concerning the offer in Żabka Nano stores, Żabka Polska therefore does not publish the lowest price required by law, which was in force during the 30-day period prior to the reduction, but instead refers to the parameter of the “lowest of the maximum prices” and directs consumers to the stores. Information provided by the undertaking indicates that there is a discrepancy between the lowest price from the 30-day period displayed in-store and the “lowest of the maximum prices” presented in advertising materials: the price in the advertisement was sometimes higher or lower than that displayed on the shelf.

Consequences

For providing incorrect information about price reductions, the President of UOKiK may impose a financial penalty of up to 10% of turnover on each undertaking.