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Commerce warns of unfair trade practices that confuse unfair offers or promotions with discounts

Commerce warns of unfair trade practices that confuse unfair offers or promotions with discounts

June 21, 2012

The Directorate General for Trade has undertaken during the last month information on the action to warn businesses of Catalonia on unfair commercial practices that confuse the offers or sales promotions. For this purpose, has sent a total of 638 informative letters to remember this obligation to major shopping centers and more than five hundred establishments in the commercial areas more representative of Catalonia.

These practices tend to occur in June and December, ie, a few weeks before the start date of the schedule set by the government rebates. This offers or promotions that represent a percentage of seasonal products more than 20 or 30% of the total, heterogeneous features, and products that were sold earlier in the same place at regular price. It is, ultimately, unfair when looking for a competitive advantage over the other traders using prices with discounts arguing making an offer or promotion that is hidden when in reality it is the advance sales period.

Remember that traders throughout the year, can apply discounts on their products for sale. Often, these discounts are presented as special offers to customers of certain items, and have a limited duration in time, but in no case may involve applying prices below their cost price. With these practices, retailers want to attract more customers, encourage sales and to promote new products. A formula accepted by consumers because they can buy new products at a price cheaper than usual.

However, these deals should not be confused with traditional sales or promotions that consumers associate with the end of summer and winter seasons, where you can find products that are in stock at a price significantly advantageous. The sales, even cause the application of reduced rates, have a purpose other than the offers and promotions. The reduction applies to seasonal items that are already on sale earlier in the same place at regular price. Its purpose, therefore, is to settle out and the products during the season could not sell and usually affects high percentage of products that are exposed for sale. Likewise, neither the sales price can not be applied below the cost price of products.

Under current regulations, businesses can only rebates for two annual periods. In the winter season, between January 7 and March 6, and in the summer season, between 1 July and 31 August.
Think there is a possibility that there are inspections by the Department of Commerce and sanctions so that they occur.

Source: Consortium for Trade, Craft and Fashion of Catalonia.

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