Black Friday Sales – How retailers can stay compliant with pricing laws

What is the law?

  • A trader announcing a price reduction must indicate in the announcement the prior price of the product. The “prior price” is the lowest price applied to the product during a period of not less than 30 days before the application of the price reduction. The purpose of the 30-day period is to prevent traders from increasing the price of a product for a short period in order to then decrease it shortly afterwards and present it as a significant price reduction that misleads consumers.

    EXAMPLE: A shop wishes to announce a price reduction in the selling price of TV on 28 November (i.e. Black Friday). The reduced Black Friday price is €500. The selling price the week leading up to the sale was €800. However, the selling price for the 3 weeks before that was €550. The trader is required to indicate €550 as the prior price as this was the lowest price in the previous 30 days even though the selling price immediately before the sale was €800. 
  • Where there are consecutive price reductions, the prior price to be indicated is the lowest price applied during a period not less than 30 days before the initial price reduction. The prior price to be indicated remains the same for all subsequent price reductions.

    EXAMPLE: The reduced Black Friday price is €500, and the prior price is €550. €550 is therefore required to be indicated as the prior price in the first price reduction announcement. €550 remains the prior price to be indicated when announcing any further reductions e.g. if the price is further reduced to €450. The initial reduced Black Friday price of €500 is not the prior price in such a scenario.
  • The situation is different for separate price reductions during a 30-day period e.g. sales that follow each other such as Black Friday and Cyber Monday, where the general obligations apply. 

    EXAMPLE: On Black Friday, the prior price of the TV is €550, and the reduced Black Friday price is €500. The price then returns to €550 on the Saturday and Sunday, following Black Friday. The next day, Cyber Monday, the reduced price is stated to be €500. However, the prior price to be indicated is €500 (i.e. the reduced Black Friday price) so in effect no price reduction may be announced. 

Who does it apply to?

  • These obligations apply to traders who sell products to Irish customers including in-store and online.

What are the penalties for non-compliance?

  • Failure to comply with these obligations is an offence, which can give rise to criminal prosecution (including a fine of up to €5000). Prosecutions are highly publicised and therefore risk reputational damage. 
  • Pricing transparency is an area of enforcement focus for the CCPC.  The CCPC recently successfully prosecuted DID Electrical Appliances, Lifestyle Sports (Ireland), Rath-wood Home and Garden World and Boots Retail (Ireland) Limited for breaches of the obligations outlined above, following online sweeps conducted by the CCPC over the 2023-2024 winter sales season, including Black Friday. Each retailer was fined €1,000 and ordered to pay the CCPC’s costs.  

* The European Union (Requirements to Indicate Product Prices) (Amendment) Regulations 2022 SI No. 597 of 2022

This document has been prepared by McCann FitzGerald LLP for general guidance only and should not be regarded as a substitute for professional advice. Such advice should always be taken before acting on any of the matters discussed.

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