Price indications on consumer products

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.