Omnibus Directive: EU requirements for advertising with price reductions

• What the Omnibus Directive is

• What is the impact of ignoring the Directive

• How Talon.One can help ensure compliance

What is the EU Omnibus Directive?

Key provisions of the Omnibus Directive include: 

• Pricing claims and indications must be clear and unambiguous: The Directive aims to give consumers better information about prices. When retailers want to offer a discount, they have to be transparent in explaining this fact—they can no longer hide behind opaque pricing strategies.

• Claims to discounts, savings or deals should not be misleading: A merchant must indicate the prior price of an item when reducing it. In the Directive, a prior price is defined as the lowest price applied by the merchant in the last 30 days. And merchants cannot establish the prior price for a shorter period than 30 days.
  

• The Directive only applies to B2C retailers: The Directive only applies to what the EU describes as “movable goods”, for example FMCG products, clothing, accessories and beauty products. Digital content or services are therefore not included, and neither are B2B companies. Member states can also provide different rules for perishable goods (in particular food that may deteriorate rapidly or expire). 

What is the impact of ignoring the Omnibus Directive?

• The nature, seriousness, extent and duration of the infringement;

• Whether any action has been taken to reduce the impact of damage;

• Any previous violations, including fines in other European Union countries.;

• Any financial benefits or losses to the seller that may have arisen from infringements of consumer law;

• Whether there have ever been any previous allegations made against the trader.

How Talon.One can help

FAQs on the EU's Omnibus Directive

• How exactly does the Omnibus Directive impact retailers' pricing and promotional strategies, and what specific changes do they need to implement to ensure compliance?

  The Omnibus Directive impacts retailers' pricing and promotional strategies by introducing requirements for clear and unambiguous pricing claims, as well as transparent disclosure of discounts and prior prices. Retailers need to adjust their pricing practices to ensure compliance, such as accurately reflecting historical pricing information and avoiding misleading pricing claims.

• Besides potential fines, what are the other consequences or risks that retailers face if they choose to ignore or fail to comply with the Omnibus Directive?

  Besides potential fines, retailers face other consequences if they ignore or fail to comply with the Omnibus Directive. These may include damage to their reputation, loss of customer trust, and legal repercussions beyond monetary penalties. Additionally, repeated violations or disregard for consumer protection regulations could lead to further scrutiny and enforcement actions from regulatory authorities.

• What are some effective strategies or tools available to retailers to help ensure compliance with the Omnibus Directive, particularly in managing pricing and promotions without relying on specific software solutions?

  Effective strategies for retailers to ensure compliance with the Omnibus Directive include implementing clear and transparent pricing policies, conducting regular audits of pricing practices, and providing staff training on compliance requirements. Utilizing robust pricing and promotional management systems can streamline compliance efforts.