Short Rules on Price Reduction Campaign in Poland

Polish law does not, as a rule, distinguish between different types of price reduction campaigns.

Polish law does not provide for requirements or a minimum content for price reduction announcements; general rules regulating misleading advertising and European Commission Guidelines in relation to the Price Indication Directive should be followed. 

Polish law does not provide for a strict limitation of the duration of promotional campaigns. However, campaigns lasting over long periods of time can be assessed under the Unfair Trading Practices Law. If the discounted price is applied for a substantial period of time, advertising it as a promotion may be misleading for consumers.

As a result of the implementation of the Omnibus directive, starting 1 January 2023, there are new legal provisions regulating the display of promotional prices in Poland.

As a rule, for an announcement of a price reduction, the seller is obliged to present the lowest price applicable in the last 30 days before the price reduction, next to the currently applicable price.

The Polish Office for Competition and Consumer Protection (UOKiK) announced in February 2023 that in the coming months it is planning to issue guidelines on the proper display of the lowest price under the Omnibus directive implementation.

So far, UOKiK has preliminarily questioned the following practices:

1. providing the current sales price and crossed-out price, without specifying what the crossed-out price actually is;
2. providing the current sales price and crossed-out price, where the explanation that the crossed-out price is the lowest price of the item in the last 30 days before the discount is shown only after it is expanded;
3. using other reference values when presenting the discount (crossed-out price), excluding the lowest price from the last 30 days before the discount;
4. calculating the amount of the discount (e.g. 20%, PLN 150) in connection with the last standard price of an item, and not the lowest one from the last 30 days;
5. using phrases other than “lowest price in the last 30 days before the discount”, i.e. “reference price”, “previous/last lowest price”, “price from the last 30 days before discount”;
6. presenting information on the lowest price in place within the last 30 days before the discount in an illegible manner: font, colours, contrast.

Apart from rules governing the display of the promotional price, Polish law provides for provisions governing price display, regardless of the announcement of a price reduction. The general rules in this respect include three main requirements:

1. the price and the unit price of a product have to be displayed in a manner that is unambiguous, clear and allows for a price comparison;
2. the price has to include VAT and any duty tax (if applicable);
3. as a rule, the price per item/kg/m/l has to be presented.

Certain price reduction campaigns may be classified as acts of unfair competition, in particular:

1. selling goods or services below the cost of producing or providing them, or reselling them below the cost of purchase in order to eliminate other sellers from the market;
2. hindering small enterprises’ access to the market by selling goods or services in commercial premises with a sales area of more than 400 sq. m. at a price which does not include a trade margin.

The practice set out in point (ii) above will not constitute an act of unfair competition if the sales are made as part of:

1. post-seasonal sales, made twice a year at the end of the summer and winter seasons, lasting no longer than one month each time;
2. sales due to the expiry of the best-before date or the expiry of the minimum durability date;
3. liquidation of a commercial facility, provided that such sale lasts no longer than 3 months from the date of the public announcement of the liquidation of the facility, and in the case of liquidation of all commercial facilities of the trader due to the cessation of the trader’s commercial activity, no longer than one year.

Apart from the above, general competition rules apply, such as the prohibition on price fixing or abusing a dominant position.

A non-compliant price display may result in the Trade Inspection imposing fines on infringing entities. The fine could reach PLN 20,000 (approx. EUR 4,350) per infringement. If there are at least three infringements during a period of 12 months beginning from the date of the first infringement, the Trade Inspection may impose a penalty of up to PLN 40,000 (approx. EUR 8,700).

Not providing consumers with clear information on prices and price promotions can also result in UOKiK launching proceedings regarding the infringement of the consumer’s collective interests.

The fine for such infringement can amount up to 10% of the annual worldwide turnover of the infringing entity. Managers who intentionally allowed the infringement may also be fined – up to PLN 2 million (approx. EUR 435,000), but only if the entity itself has also been fined for the infringement. In addition to fines, UOKiK may impose corrective measures, e.g. publishing the decision or a particular statement, compensating consumers or informing them of the said breach.

Instead of a fine, UOKiK may also end the proceedings with a commitment decision that specifies certain actions (remedies) the company undertakes to fulfil within a specific time. It is at UOKiK’s discretion whether to accept a commitment from the company and not impose a fine.

In the case of acts of unfair competition, an entity whose interest has been threatened or infringed may bring civil law claims.

In the case of antitrust violations, the fine can amount up to 10% of the annual worldwide turnover of the infringing entity. Additionally, managers and parent companies may also be fined.