Black Friday to Christmas: A Legal Guide for EU-Compliant Online Promotions

With Black Friday, Cyber Monday, and Christmas sales around the corner, online businesses have a prime opportunity to increase sales. But with great opportunities come responsibilities — especially for businesses targeting European Union (EU) consumers. In this article, we provide a practical legal guide to help you maximise seasonal sales while ensuring full compliance with EU laws.

Clearly Define Promotion Terms and Conditions

Before launching a promotion, ensure you draft terms and conditions (T&Cs). These can be added to your existing T&Cs or provided as a separate document for the promotion. Either option works, as long as all significant information is included. What counts as “significant” depends on the promotion. Any details that could influence a customer’s understanding of the offer are considered important. While the specifics may vary, the following examples generally apply to most promotions:

• How to participate and eligibility: clearly explain how customers can take part, including any requirements like proof of purchase or minimum spending thresholds.
• Type and nature of the promotion: unless obvious, specify whether it’s a discount, bundle offer, giveaway, or other type of promotion.
• Restrictions or limitations: highlight any restrictions, such as age, geographic location, specific products the promotion applies to, or other conditions. If using a general T&Cs template for multiple promotions, ensure it directs customers to where they can find specific details.
• Start and end dates: if applicable, state when the promotion begins and ends.
• Product availability: provide details about stock levels or other limitations that could impact availability.

Write your T&Cs in simple, clear language to make them easy for consumers to understand, and make sure they are easily accessible on your website and in any promotional materials.

Keep in mind that the examples above apply only to promotions. Your T&Cs must also include other mandatory information required by EU law, such as your business details, consumer rights, and any other essential legal information.

Display Accurate Before-and-After Pricing 

In the EU, traders offering discounts must display the “prior price” of the item. This is the lowest price the product was sold for during the 30 days before the discount was announced, not the most recently charged price. Any price reductions, whether as percentages or promotional statements, must be based on this prior price. This rule ensures that discounts are genuine and prevents traders from misleading consumers by artificially raising prices before offering a “discount”.

For example, a smartphone was listed on your website at €400 on 1 November and increased to €450 on 15 November. If you decide to announce a 15% discount on the smartphone starting from 29 November, you must state the prior price, which is the lowest price in the 30 days before the discount (i.e., €400). The discount must also be based on this price, meaning the 15% discount will be applied to €400, resulting in €60 off. Simply mentioning the prior price is not enough; it must be used to calculate the actual discount to comply with EU regulations.

If you apply multiple price reductions as part of a sales campaign, the prior price must be the lowest price in the 30 days before the first reduction. Exceptions to the prior price rule include certain items, such as perishable goods or products introduced to the market less than 30 days ago.

Highlight Total Prices with Full Transparency 

Always display the total price upfront, including VAT, delivery fees, and any other charges. If some costs can’t be calculated immediately, explain how they will be determined, as failure to do so could mean consumers don’t have to pay undisclosed charges.

For example, if an item costs €50 including VAT, and delivery is €5, the total price of €55 should be shown clearly. If delivery costs vary based on location, explain that upfront: “Delivery costs will be calculated at checkout based on your address”.

Avoid Misleading or Ambiguous Promotional Practices 

Avoid using misleading tactics, such as falsely claiming limited stock or exaggerating discounts or offers. For instance, do not advertise an item as “almost sold out” if plenty of stock is available. Similarly, if you promise fast delivery or other benefits, make sure to deliver as stated. False claims about products, services, or prices are prohibited, and enforcement authorities can take action against businesses that breach these rules.

How Can Logan & Partners Assist You?

If you’d like to discuss your promotional strategy, reach out and book a free initial consultation.

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