News

False Black Friday discounts: Six companies sanctioned and key lessons for the retail sector

""
""

In 2023, the Spanish Ministry of Consumer Affairs announced sanctions against several major online retailers for advertising Black Friday discounts deemed misleading by the authorities. The case highlights a significant shift in the regulation of promotional pricing: it is no longer sufficient to display a “struck-through” previous price; the reference price must be genuine, recent, and verifiable.

Background of the case

The Spanish Ministry of Consumer Affairs imposed sanctions on MediaMarkt, Carrefour, PC Componentes, Notino Italia, and Gestaweb 2020 for engaging in unfair commercial practices by advertising discounts on artificially inflated prices. Specifically:

  • Prices were increased shortly before Black Friday 2023.
  • These prices were then reduced and presented as “offers.”
  • The regulator determined that the discounts were fictitious, meaning no actual savings were available to consumers.
  • Sanctions included financial penalties and the obligation to withdraw misleading offers.

Regulatory requirements and corporate obligations

Under Spanish law, the “reference price” for any discount must correspond to the lowest price applied in the previous 30 days. Promotional campaigns must be accurate, objective, and fully compliant with applicable regulations. Retailers are expected to ensure that all pricing strategies, discounts, and promotions are tangible, traceable, and demonstrable.

For businesses, this entails:

  • Maintaining historical price records.
  • Correctly configuring discount and sale systems.
  • Avoiding artificial price manipulations.
  • Preventing misleading communications.

Practical guidance for online sellers

  • Audit historical pricing, particularly during sale periods.
  • Refrain from using fictitious “previous prices” or artificially inflating prices prior to promotions.
  • Avoid deceptive tactics such as drip pricing, false urgency, or misleading “limited offers.”
  • Ensure full transparency regarding final prices, taxes, and additional costs.
  • Keep documentation supporting pricing and discount policies.

Conclusion

The sanctions against MediaMarkt, Carrefour, PC Componentes, Notino Italia, and Gestaweb 2020 serve as a clear warning: both physical and online retail sectors are under close scrutiny. The message from the authorities is unequivocal—marketing practices must comply with the law, and misleading promotions will not be tolerated.

 

 

Authored by Adrián Fernández de Pedro.

View more insights and analysis

Register now to receive personalized content and more!