Watch out for misleading discounts, Dutch regulator warns week before Black Friday
The Netherlands Authority for Consumers and Markets (ACM) has warned Dutch consumers to beware of fake discounts as Black Friday, Sinterklaas, and Christmas approach. The regulator examined how stores present their discounts and found that 75 percent of the retailers surveyed were misleading consumers.
Over the past few weeks, ACM investigated the offers of 24 major retailers in home furnishing, clothing, DIY and garden, household electronics, and cosmetics. It found one or more misleading price indications at 18 of the 24 sellers.
The main problem was in the display of the “from” price, the price against which the discount is calculated. According to the ACM, sellers use terms like “recommended retail price” or “usual price” without explaining what they mean. The rule in the Nehtelrand is that the “from” price must be the lowest price the seller has charged in the past 30 days, and the discount must be compared to that price.
“People are making a lot of purchases these days. Companies capitalize on this by offering products that appear to have high discounts. In practice, these discounts are often disappointing,” said Fleur Severijns of the ACM. “This not only misleads consumers but also unfair competition with companies that do comply with the rules. That's why we take action against this.”
The ACM warned consumers to be wary of discounts that seem too good to be true. “Sellers sometimes offer substantial discounts, especially during Black Friday. But not all offers are genuine. Some sellers make discounts appear larger than they actually are,” the regulator wrote.
Check what an item costs at other stores before buying. If buying online, also check a webshop’s reliability by looking at reviews on multiple review sites, and don’t order if you have any doubts.
The ACM is currently addressing the businesses found to offer misleading discounts and asking them to adjust their price displays. Businesses that fail to do so will face sanctions.
