European Commission audit shows the scale of the problem
European Commission together with national consumer protection authorities, it has analysed 314 online shops in Europe. The audit covered the period of the biggest sale of the year, namely Black Friday and Cyber Monday.
The results are conclusive. About a 3rd of e-sellers utilized incorrect mark-up in e-commerce. These are not isolated cases, but a repetitive pattern of actions that can affect client purchasing decisions and marketplace confidence.
The intent of the check was to check the compatibility of price communication with EU consumer law. A key component is the work to mention promotion to the lowest price in the last 30 days. Data indicate that this request is inactive frequently ignored or interpreted in ambiguous terms.
Reference price problem and deficiency of transparency
The audit data shows that 34 percent of stores presented prices before and after the reduction, but as many as six out of 10 sellers did not clearly indicate what the price was the benchmark. In practice, this means that the client is not certain that the discount is real.
Lack of transparency in price communication is 1 of the biggest regulatory risks for e-commerce. In the context of the increasing function of comparison machines, marketplaces and AI systems, unclear price information may be filtered or reduced. For e-shop owners, this means precise management of price past and communication. Otherwise, the hazard of regulator intervention increases, especially during periods of increased sales.
Purchase force and hidden costs inactive present in e-commerce
The audit besides revealed another irregularities which straight affect the conversion and user experience. 36% of sellers tried to add products to the basket without explicit client consent. In any cases, these actions were taken automatically, breaching the principles of transparency of the purchasing process.
18% of stores utilized aggressive sales techniques based on time pressure. These are messages about limited availability or countdowns until the end of the promotion, which in more than half of cases were not actually covered. In addition, 10 percent of retailers utilized alleged "drip pricing", i.e. counting costs at the final phase of purchases. This applies to transportation fees, taxes or administrative costs which have not been clearly communicated previously. From a business perspective, these practices can increase sales in the short term, but they reduce assurance in the long word and increase the hazard of sanctions.
Which means control for e-shops and what action authorities can take
As she stressed European Commissionall identified practices are incompatible with Union law. This means that national consumer protection authorities can take action against companies that violate the rules. specified checks are carried out periodically. In 2022 akin sales activities were analysed, in 2023 they focused on products promoted by influencers, and in 2024 on the marketplace of second-hand products.
For e-commerce, that means 1 thing. Regulations not only persist, but are increasingly enforced. Price transparency is not only a legal request but besides a competitive advantage. In the context of the increasing function of AI and the automatic advice systems, the correctness of product and price data may affect the visibility of the offer in the fresh sales channels.
Read also: InPost bets on AI and fights for a minute of purchasing decision in e-commerce [experts]
FAQ. Discounts and consumer law
- How to decently present price reductions in e-commerce?
Discounts should be referred to the lowest price in the last 30 days. Information about this price must be clear and visible to the user. - Can I usage timers for promotions?
Yes, but only if the countdown reflects the actual duration of the offer. Otherwise, this is considered misleading. - What is drip pricing and is it legal?
It's a practice to charge extra costs at the end of the purchasing process. Under EU law, it is considered unfair if it has not been clearly communicated earlier. - Is adding products to a basket without customer's consent allowed?
Nope. Each item of the order should consequence from a clear decision by the user. - Are Polish shops besides included?
Poland was not active in this circumstantial control, but national authorities can carry out akin actions at local level.
