Price indications on consumer products

SUMMARY OF:

Directive 98/6/EC rules on indicating prices of products offered to consumers

Directive (EU) 2019/2161 amending Directive 93/13/EEC and Directives 98/6/EC, 2005/29/EC and 2011/83/EU as regards the better enforcement and modernisation of EU consumer protection rules

WHAT IS THE AIM OF THE DIRECTIVE?

Directive 98/6/EC requires the selling price and the unit price of all products offered by traders to consumers to be clearly indicated in order to improve consumer information and to enable price comparisons.
It repealed Directives 79/581/EEC (foodstuff prices) and 88/314/EEC (non-foodstuff prices) with effect from 18 March 2000.
Directive 98/6/EC was amended by Directive (EU) 2019/2161 on the better enforcement and modernisation of EU consumer protection rules.

KEY POINTS

Directive 98/6/EC

The selling price and the unit price must be indicated in an unambiguous, easily identifiable and clearly legible manner for all products offered by traders to consumers (i.e. the final price should include value added tax and all other taxes).
The unit price need not be indicated if it is identical to the selling price.
However, EU Member States may decide not to apply these rules:
- to products supplied in the course of providing a service;
- to sales by auction and sales of works of art and antiques.
For products sold in bulk, only the unit price must be indicated.
Any advertising that mentions the selling price must also indicate the unit price.
Member States may:
- waive the obligation to indicate the unit price of products if such indication would not be useful or would be liable to create confusion;
- draw up a list of non-food products to which the obligation to indicate the unit price still applies in case of such a waiver.
The directive provided for a transitional period during which small retail businesses were not obliged to indicate the unit price of products other than those sold in bulk.
Member States must:
- take appropriate measures to inform all persons concerned when this legislation becomes national law;
- lay down, and provide information on, the system of penalties for infringements of the national laws adopted to apply this directive.

Directive (EU) 2019/2161

Amending Directive (EU) 2019/2161 introduces a new article in Directive 98/6/EC regarding information to consumers about price reductions. Any announcement of a price reduction must clearly indicate the price previously applied by the trader (prior price). The prior price means the lowest price applied by the trader during a period of time not shorter than 30 days prior to the application of the price reduction.
The amendment provides for regulatory options for Member States as regards goods that are liable to deteriorate or expire rapidly (in particular food), goods that have been on sale for less than 30 days and goods that are subject to continuous price reductions.
The existing requirement for Member States to introduce effective, proportionate and dissuasive penalties for breaches of national rules on price indications has been complemented with a list of criteria for the imposition of penalties.

FROM WHEN DO THE DIRECTIVES APPLY?

Directive 98/6/EC had to become law in the Member States by 18 March 2000.
Amending Directive (EU) 2019/2161 had to become law in the Member States by 28 November 2021. Member States must apply the rules of the directive from 28 May 2022.

BACKGROUND

For further information, see:

Price indication directive (European Commission)
Guidance on the interpretation and application of Article 6a of Directive 98/6/EC
Factsheet – New Deal: What benefits will I get as a consumer? (European Commission).

MAIN DOCUMENTS

Directive 98/6/EC of the European Parliament and of the Council of 16 February 1998 on consumer protection in the indication of the prices of products offered to consumers (OJ L 80, 18.3.1998, pp. 27–31).

Directive (EU) 2019/2161 of the European Parliament and of the Council of 27 November 2019 amending Council Directive 93/13/EEC and Directives 98/6/EC, 2005/29/EC and 2011/83/EU of the European Parliament and of the Council as regards the better enforcement and modernisation of Union consumer protection rules (OJ L 328, 18.12.2019, pp. 7–28).

Title and reference