Price cuts – UOKiK conducts e-commence inspections

UOKiK has begun examining whether and in what way businesses comply with the obligation relating to information about price cuts, introduced as of 1 January 2023 (implementing the Omnibus Directive).

When a firm announces price reductions, it is required to state – in addition to the product or service price or unit price – the lowest price in effect over the past thirty days.

The lowest price must be stated in a manner that:

• is intelligible and does not give rise to doubt,

• enables the cost of the product in question to be read correctly.

These regulations do not only apply to online and bricks-and-mortar store sales; in some cases they apply to advertising on television, radio, or online as well.

UOKiK reviewed approximately 40 e-commerce websites in various sectors: footwear, cosmetics, clothing, and sports and electronic equipment.

All of the firms inspected were asked to state their standpoint on correct labeling regarding prices and promotions. Conventional stores are also in line to be inspected. At the moment, the inspections only constitute preliminary probes.

Firms that do not comply with the new information obligations regarding product and service prices can expect to be fined by the Voivodship Trade Inspectorate Officer. The fine might be up to PLN 20 000, and even up to PLN 40 000 in cases of repeat offences.

If a firm is found to have conducted practices violating collective consumer interests, it can also be fined up to 10% of the turnover generated in the financial year preceding the year of the fine, by the President of UOKiK.

UOKiK envisages further inspections in the near future, and the areas under scrutiny will include compliance with new obligations to provide information regarding consumer reviews and placement.