Netherlands: ACM Urgently Reminds Businesses of Discount Rules Ahead of Holiday Season

The Netherlands Authority for Consumers & Markets (ACM) has issued a warning to online businesses with respect to misleading discounts,^[1] as Black Friday and the holiday season approach. 

The ACM has found that companies often use “from-to” pricing to create the illusion of a discount, comparing sale prices to inflated “recommended” or “original” prices that were never actually charged. Businesses are reminded that discounts must be based on the lowest price charged in a period of at least 30 days prior to the application of the price reduction. 

The ACM adds that businesses are free to mention the recommended retail price in their announcements, but they must not mislead consumers. Creating the false impression of a discount with a recommended retail price, can be avoided by clearly explaining what the recommended retail price represents, by not showing a discount percentage, and by not displaying the recommended retail price as a strike-through price. 

Misleading consumers with fake discounts can result in fines of up to €900,000 per violation. To assist businesses in aligning their pricing strategies with the Dutch rules on price reduction announcements, the ACM is hosting a session open to interested companies. 

[1] Available here (in Dutch): https://www.acm.nl/nl/publicaties/acm-waarschuwt-voor-nepkortingen