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CMS Expert Guide to Short Rules on Price Reduction Campaigns

As businesses look to manage revenue patterns throughout the year, discounts can be a useful tool. To assist in this effort, we have created a guide for businesses to consider when planning these types of campaigns. Through it we provide strategies and tactics for optimizing pricing and inventory management, benefiting both companies and customers alike. In this respect, CMS is happy to introduce

What?

The CMS Guide “Short Rules on Price Reduction Campaigns” to help companies when they’re planning price reduction campaigns.

Why?

The retailers selling their goods across different territories need to bear in mind various rules, including those governing the way they treat customers. 

The legislation aimed at protecting consumers differs between jurisdictions and retailers need tools to help them navigate the complex consumer protection systems. National legislation provides for different price reduction campaigns, all stipulating different sets of rules. 

Price reduction rules are designed to achieve transparency, allowing customers to make informed decisions on their purchases, as well as ensuring companies take precautionary measures to inform their customers about the conditions of different price reduction campaigns. 

The Guide covers the provisions on price reduction campaigns regulated by the consumer protection laws in the following jurisdictions: Bulgaria, Croatia, Serbia, Slovenia, Turkey and Ukraine. 

How?

National legislation sets limits on the kind of price reduction campaigns that can be run, the minimum content for price reduction announcements, the period of price reduction campaigns, the indicators that displayed prices shall include, and finally, any fines or other penalties for infringement. 

Of course, retailers should not implement price reductions that might trigger accusations of unfair competition. Covering several jurisdictions with different rules regulating competition on the market, this Guide details any specific competition law aspects concerning price reduction in each jurisdiction; but retailers should recognize that there might be additional pricing issues that are generally problematic from the competition law perspective (e.g. dynamic pricing algorithms).

If not?

Monetary fines and even other sanctions, such as temporarily prohibiting the selling of goods, may be imposed in some jurisdictions. This guide covers the main fines related to the price indication that are stipulated by rules governing consumer protection, but retailers should also bear in mind sanctions prescribed by other rules, e.g. regulations governing relationships between traders.