“We put an end to the phenomenon of misleading and false discounts,” says Takis Theodorikakos
The Code of Conduct for discounts, bids and the next ten days will be informed by both commercial and consumer and consumers for its implementation from today.
The central idea of the code is that in order to be a true and reliable offer or deduction, the sale price should be lower than the cheapest real price of the last thirty days. As Minister of Development Takis Theodorikakos stated: “We are fighting for a constant battle through informing citizens, working with healthy entrepreneurship and continuous controls, to achieve stabilization of prices in foodstuffs and basic livelihoods.
We enhance competition and transparency in prices. That is why today we take another step, ending the phenomenon of misleading and false discounts, which unfortunately are used in the context of unfair commercial practices on the market. We have worked with the food industry and supermarket business for months and we have now come up with a new code of conduct.
The central idea is that in order to be a true and reliable offer or discount, the sale price should be lower than the cheapest real price of the last thirty days. In the next ten days, both commercial and consumers will continue to be informed of the application of the Code of Conduct.
● Informing public opinion today, publicity is released with questions and answers from the Ministry of Development and the General Secretariat of Commerce.
● Consumers can be informed of prices through the e-Katanalotis platform.
Organized checks start on March 17, with fines of up to € 3m and citizens will be able to make their complaints about misleading discounts and bids on the kataggelies.mindev.gov.gr/. Our central message, the informed citizen and consumer has power, with the new code we want more true discounts and offers, transparency and better prices. “
Questions and answers for consumers
1. What is the Code of Conduct for discounts, offers and other price reduction announcements?
The Code of Conduct is a detailed text, which is in the form of a ministerial decision, in which commercial discounts and bids that are considered misleading and should be avoided by the market. With the Code of Conduct, commercial businesses can no longer use practices that may mislead the consumer in relation to the key elements of a discount, namely the initial price, discount rate or the benefit of the consumer from the discount.
2. What changes on the market with the Code of Conduct?
The Code of Conduct provides that, in a price reduction announcement (eg discount or offer) the original price from which the discount is considered to be the lowest price offered by the product in the last 30 days.
Thus, traders can no longer be regarded as a “initial price”, from which a discount, a very old “inflated price”, a “price list” or a “proposed retail price”. On the contrary, the “initial price” to which they are mentioned should be recent, be the usual price at which the product is sold and be the lowest to which the product was offered in the last 30 days?
3. Are there any exceptions from the Code of Conduct?
Yes, the Code of Conduct excludes vulnerable products, especially those of less than 30 days. However, violations related to discounts and bids on these products are punished by the general provisions on unfair commercial practices.
4. Are discounts and offers abolished or reduced? Will I see fewer discounts and offers on the market?
No, discounts and bids are not abolished, but they are encouraged if they are true. What is abolished is the fictitious discounts, that is, the discounts made against false or artificially “inflated” initial prices.
True discounts remain and you will be able to detect them more easily and trust them.
5. What do I earn, as a consumer, from the application of the Code of Conduct?
The most important gain is that you will see real offers and discounts. So you will be able to do effective market research and not get carried away by fictional high discount rates but choose to buy the product that really interests you.
In addition, market transparency and the clearest prices will increase competition between businesses, leading to a gradual reduction in prices on specific products sold at a “discount” all year long.
Finally, the removal of fictitious discounts will allow you to observe more product price and unit price (per kilo or liter), so that you can do proper market research and not buy products that have been unjustifiably priced.
6. Can I have some examples of fictitious discounts removed with the Code of Conduct?
Yes, classic examples of fictitious discount, which is contrary to the Code of Conduct, are:
a) A trader sells a television with a discount of 5,000 euros initial price at 1,000 euros final price with a “discount” of 80% or “benefit” of 4,000 euros.
However, the trader never sold this particular television model for 5,000 euros. It simply mentions this inflated value as a “manufacturer’s price” or “price list price” or makes no mention of its origin.
The truth is that the merchant has been selling the television for 1,000 euros in the last 6 months and the “discount” is not real, nor is the price of 1,000 euros “opportunity”. It’s just the usual price at which this TV is sold.
b) An electronics trader sells refrigerators. Throughout June he was selling a particular refrigerator model of 1,000 euros. With the start of summer discounts in July, it increases the price to 1,200 euros and claims to make 20% discount from a fictitious initial price of 1,500 euros.
Obviously, this discount is fictitious as the trader, a few days before selling the fridge cheaper. However, knowing that consumers are waiting for summer discounts to do their shopping, it increased the price of 200 euros in the first week of discounts, citing a “discount” of 300 euros from a price of 1,500 euros, which either never sold or had sold much earlier when the model was new.
c) A merchant sells sunglasses. During Black Friday, it offers a specific model with a 50% discount of 300 euros initial price at 150 euros final price.
However, and 20 days ago he sold the same model for 150 euros, increased his price a few days before Black Friday to 300 euros, and made a 50% discount and continued to sell it at his usual price, ie 150 euros.
d) A trader sells 1+1 “gift” shampoo, in “knit” packaging throughout the year.
There is no real discount here since the trader never sells a shampoo unit alone, so the word “gift” has no meaning. What, in practice, does the trader is to oblige the consumer to buy at least two units of the product whenever he is shopping, at a regular price advertising the second unit as a “supposed” gift.
Obviously, in this case, the word “gift” is fictitious since the consumer could never buy a unit of shampoo alone so that the concept of “gift” can emerge.
e) A trader sells flour in 2+1 “gift” and, considering that the “original price” or “price list” of a kilo of flour is 2 euros, sells the package 2+1 “gift” 4 euros.
At the same time, it sells a simple 1 kg pack of the same brand of flour, with a discount of 50% from 2 euros to 1 euro.
The consumer realizes that if he buys 3 kg of flour in the form of the 2+1 “gift” package he will pay 4 euros, and if he buys three separate packages of 1kg of flour, he will pay 3 euros.
Obviously, too, the word “gift” is fictitious, since if the consumer chooses the “gift” it will pay more money for the same amount of flour.
(f) A trader sells a discount foam, from 8 euros initial price at 4 euros final price. The card states that “you earn 4 euros”.
The merchant then decides to react the product from 4 euros final price to 5 euros final price. In order to make the appreciation less perceived by the consumer, he decides to “inflate” the initial price from 8 euros to 10 euros.
The new card reports “from 10 euros now 5 euros” while also saying that “you earn 5 euros”.
Here the “discount” is fictitious as, among other things, the merchant displaced the product by 1 euro but informs the consumer that, after the appreciation, the consumer earns 1 euro more.
7. Can I easily identify fictitious discounts?
Detecting fictitious discounts by consumers is not an easy task, since in order to prove the fictitious discount, the consumer will usually have to keep a price record file for many days.
On the contrary, the state, through its audit authorities, can easily identify these practices and impose high and deterrent fines on businesses that violate the law.
8. If I find a fictional discount anyway I can complain about?
You can denounce the existence of fictitious discounts and bids, as well as any other infringement of consumer legislation, at: https://kataggelies.mindev.gov.gr/
9. If a business violates the Code of Conduct, what are the sanctions imposed on it?
A fine of EUR 5,000 to EUR 1,500,000 is imposed, and in the event of a recurrence within five years up to EUR 3,000,000.
Also, for serious infringements that carry a fine of more than 50,000 euros, the name of the business, as well as summary data on the infringement, are published by the Ministry of Development.
