Filenews 21 June 2024 - by Eleftheria Paizanou
Guidance on businesses to avoid unfair misleading practices, indicate the prices of products they offer to consumers and enhance transparency so that consumers actually pay less when certain products are put on sale and discounts, gives the Consumer Protection Service of the Ministry of Energy, which issued a guide to offers and discounts for businesses.
The purpose of the guide is to guide businesses in relation to specific policies they implement to promote their products. https://consumer.gov.cy/en/
The need for the adoption of the new policy arose, mainly, from the actions of the Consumer Service (controls, trainings, new legislation), as it was found that general guidance of businesses is required, in order to set specific principles, which all traders adhere to for purposes of uniformity and smooth operation of the market.
The ministry believes that the faithful implementation of this tool will help inform businesses about the policy of discounts or offers. At the same time, it will help inform consumers so that they know and claim their rights. In addition, it will enhance transparency, protect consumer rights and maintain healthy competition. It will also serve as a tool to inform consumers about their rights so that they can effectively assert them.
Who is it for?
The new guide is aimed at retailers who are directly contracted with the consumer, i.e. they offer products for sale to consumers, either directly or through intermediary traders such as online platforms. It is also addressed to traders, acting as producers and/or importers of products and who, after having affixed labels to their products containing claims constituting a price reduction announcement accompanied by a gift offer or combined offer, supply retailers.
Yesterday, Energy Minister George Papanastasiou, presenting the new policy on business offer and discount practices, noted that this initiative will not solve all market problems, but it is another important step in this direction and comes at a really difficult time, both for consumers and businesses. The minister called on businesses to implement the guide and consumers to be vigilant in protecting their rights.
The amount of the discount should be stated
According to the relevant guide, announcements for price reductions can be numerical, i.e. indicate the amount saved or the percentage discount. Also, the price reduction may also not be numeric. That is, they must be expressions that indicate that the price of a product or category of products has decreased, without indicating the amount or percentage of the discount.
Both cases are subject to the same regulations. In particular, when the price of a product decreases, the previous price, the current selling price, as well as the percentage of the reduction should be indicated.
When operators announce a price reduction and are asked to indicate the previous selling price of the product, they must be very careful and make sure that the previous price they indicate is the correct one. The previous price shall not necessarily be considered to be the immediately preceding selling price, but the lowest selling price at which the same product was sold in terms of quality or quantity within a period of thirty days prior to the application of the price reduction.
