As Black Friday approaches, we want to remind all retail companies about the regulations concerning pricing and transparency. To ensure customers receive accurate and clear information about prices—allowing them to make informed decisions—legislators have enacted provisions aimed at ensuring fair and transparent communication regarding pricing and offers.
When engaging in pricing and marketing, it is essential to consider both the Swedish Price Information Act and the general provisions of the Swedish Marketing Act, along with best practices if you are providing products to consumers.
Key Provisions
1. Clear Price Information:
- Prices must be clearly presented, including both the price of the goods and the comparative price. For products that are not goods, the product price should be stated.
- If the price for a product cannot be stated, the business operator must provide information on the basis of how the price is determined.
- Price information must be provided in writing if the consumer cannot receive it in any other equivalent manner.
2. Inclusion of Fees:
- All mandatory fees for accessing the goods or services must be included in the stated price. This includes taxes like VAT and other charges.
3. Discounts and Offers:
- If a product is offered with a statement that the price has been reduced (the Swedish Consumer Agency’s stance is that this includes terms like "final sale," "sale," "promotion," or "offer"), the lowest price applied to the product by the business operator in the 30 days preceding the reduction must be stated. If the price has been gradually reduced during this time, the price before the first reduction must be indicated.
- An exception exists for goods that can quickly deteriorate or become outdated.
4. Prohibition on Misleading Information:
- Businesses may not use incorrect statements or representations that mislead consumers regarding the product price, the basis for price calculation, special price advantages, or payment terms.
Consequences of Violating the Law
Non-compliance with the Price Information Act can result in accountability under the Swedish Marketing Act, leading to prohibitions and penalties for the business.
If you need further assistance or guidance regarding your pricing and marketing practices, please contact My Janse, my.janse@synch.law
