Consumer Watchdog Fines Two Retail Chains €35,000 Each for Repeat Misleading Promotions

The Commission for Consumer Protection has imposed two financial penalties of €35,000 each on two major retail chains for continuing to engage in unfair commercial practices that had already been prohibited. The infringements were identified during inspections carried out following consumer complaints and concerned discrepancies between what customers were promised and the actual terms and conditions of purchase.

In the first case, a pack of chicken was advertised at a reduced price of €3.04, but the customer was charged €4.34 at the checkout. Thus, instead of receiving the advertised discount, the test purchase was charged at the full price, which was €1.30 higher, or almost 43% above the advertised promotional price. The lower price displayed on the shelf label attracts consumers' attention and may be a decisive factor in their choice of product. However, when that price is not applied at the checkout, consumers are misled about the actual cost of their purchase and the advertised price advantage.

In the second case, a promotional offer for a non-food product was advertised through thousands of leaflets, yet the store inspected had made only two units of the product available. Both were sold on the first day of the four-day promotional campaign. For the remaining days, consumers continued to be attracted by the advertisement but were unable to purchase the advertised product at that store. The inspection established a significant discrepancy between the scale of the advertising campaign and the quantity of stock made available, which amounted to just two units. No evidence was provided of objective reasons for the insufficient stock, nor was there any evidence that an equivalent product had been made available at the advertised price.

In both cases, binding orders issued by the Chairperson of the Commission for Consumer Protection prohibiting the respective unfair commercial practices were already in force against the retailers. Nevertheless, the practices continued. The relevant penalty notices have therefore also been issued. These are subject to appeal.

The Commission for Consumer Protection reminds retailers that advertised discounts must be honoured at the point of purchase and that promotional offers must be supported by reasonable stock levels, proportionate to the duration and scale of the campaign. Consumers who identify a discrepancy between the price displayed on the shelf and the price charged at the checkout may submit a complaint to the Commission, providing a receipt and a photograph of the advertised price.