>The Federal Council has amended the Price Disclosure Ordinance. The retail sector will benefit from more flexibility in self-comparison when announcing reduced prices. In self-comparison, a provider compares a new price with their previous price. For example: “50 francs instead of 100, 50 percent discount.”
>The Federal Council leaves it up to retailers whether they want to adhere to the previous rule and make short-term comparisons or use the newly permitted unlimited price comparison. Previously, price comparisons were allowed for half the duration that the previous price was in effect, with a maximum of two months.
>Now, retailers can use a comparison price without time limitations for all subsequent, consecutive price reductions, as long as the product was actually sold at the higher comparison price for 30 consecutive days beforehand.
>If a product or service is removed from the assortment and then reoffered, the last price may now be used as a comparison price. As the Federal Council announced on Wednesday, this reduces administrative efforts in both brick-and-mortar and online retail.
>For example, providers will need to relabel products less frequently. However, the retention period for documentation proving self-comparison will be extended. The ordinance change will take effect on January 1, 2025.
>__Consumer Protection is Upset__
>Consumer protection is not at all in agreement with the change. “The new rule on price disclosure does not simplify things but rather opens the door to intransparency and pseudo-sales,” says managing director Sara Stalder.
>She notes: “For consumers, this means that price comparisons for discounts can hardly be trusted anymore. Providers could, for instance, set ‘phantom’ prices — inflated prices — for a short period and then advertise the regular price as a promotion for an unlimited time.”
>Stalder further comments: “Given the financial situation of many households, price reductions are important for consumers — providers know this. They already exploit this and, thanks to this rule, will increasingly advertise their product prices as so-called promotions and ‘cheap’ prices.”
>Consumer protection takes a tough stance against the Federal Council. According to Stalder, the broad liberalization in the Price Disclosure Ordinance benefits only the providers. “In its current communication, the Federal Council only highlights the increased choices, flexibility, or reduced administrative burden for providers. Tellingly, the expectations of consumers for reliable and understandable price disclosures are not mentioned at all.” (sda/cma)
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Translation:
>The Federal Council has amended the Price Disclosure Ordinance. The retail sector will benefit from more flexibility in self-comparison when announcing reduced prices. In self-comparison, a provider compares a new price with their previous price. For example: “50 francs instead of 100, 50 percent discount.”
>The Federal Council leaves it up to retailers whether they want to adhere to the previous rule and make short-term comparisons or use the newly permitted unlimited price comparison. Previously, price comparisons were allowed for half the duration that the previous price was in effect, with a maximum of two months.
>Now, retailers can use a comparison price without time limitations for all subsequent, consecutive price reductions, as long as the product was actually sold at the higher comparison price for 30 consecutive days beforehand.
>If a product or service is removed from the assortment and then reoffered, the last price may now be used as a comparison price. As the Federal Council announced on Wednesday, this reduces administrative efforts in both brick-and-mortar and online retail.
>For example, providers will need to relabel products less frequently. However, the retention period for documentation proving self-comparison will be extended. The ordinance change will take effect on January 1, 2025.
>__Consumer Protection is Upset__
>Consumer protection is not at all in agreement with the change. “The new rule on price disclosure does not simplify things but rather opens the door to intransparency and pseudo-sales,” says managing director Sara Stalder.
>She notes: “For consumers, this means that price comparisons for discounts can hardly be trusted anymore. Providers could, for instance, set ‘phantom’ prices — inflated prices — for a short period and then advertise the regular price as a promotion for an unlimited time.”
>Stalder further comments: “Given the financial situation of many households, price reductions are important for consumers — providers know this. They already exploit this and, thanks to this rule, will increasingly advertise their product prices as so-called promotions and ‘cheap’ prices.”
>Consumer protection takes a tough stance against the Federal Council. According to Stalder, the broad liberalization in the Price Disclosure Ordinance benefits only the providers. “In its current communication, the Federal Council only highlights the increased choices, flexibility, or reduced administrative burden for providers. Tellingly, the expectations of consumers for reliable and understandable price disclosures are not mentioned at all.” (sda/cma)
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