What prior price must a shop show when announcing a discount?

The Citead team, updated

In short. Article 6a requires the lowest price during at least the preceding 30 days, with national options for perishables, new arrivals and progressive discounts.

Definition: The prior price is the lowest price the trader applies during a period of at least 30 days before a price reduction. Article 6a of the EU Price Indication Directive requires that price to accompany a discount announcement, subject to exceptions available through national law.

Key facts

How is the reference price calculated?

The Commission's guidance, section 2.1, requires the trader to include earlier promotional prices within the reference period. A temporary return to a higher price leaves those earlier discounts in the calculation. Where a trader charges different prices across sales channels or shops, the reference price is the lowest price in the respective channel or shop during at least the preceding 30 days.

The guidance gives an example in which the lowest price during the previous 30 days is EUR 100 and the latest selling price is EUR 160. An announced 50% reduction must be calculated from EUR 100.

The Aldi Süd judgment, paragraphs 24 to 27, requires the prior price to form the actual basis of the calculation. The selling price presented as reduced must be below that prior price.

Which exceptions can national law provide?

Article 6a(3) to (5) gives Member States these options:

  • For goods liable to deteriorate or expire rapidly, national law may provide different rules.
  • For products on the market for less than 30 days, national law may allow a shorter reference period.
  • For progressively increasing reductions, national law may allow the prior price to remain the price before the first reduction.

The Commission's guidance, sections 4.1 to 4.3, explains their limits. The perishable-goods option can include exemption or use of the immediately preceding price. Fresh food and drinks with short expiry periods are examples; seasonal clothing falls outside this category.

For new arrivals, the relevant period concerns the specific trader's sale of the goods. This option shortens the reference period while retaining a reference-period requirement. Goods returning after a stock interruption or a seasonal absence count as already on the market.

For progressive discounts, the guidance describes one continuous campaign with reductions increasing without interruption. The lowest price during the 30 days before the first reduction remains the reference throughout. Separate campaigns interrupted by price increases use the general rule, including earlier promotional prices in the reference period.

Where must an online shop show the price?

The Commission's guidance, sections 1.1 and 2.2, covers crossed-out prices and announcements such as “sales” or “Black Friday offers” that create an impression of a reduction.

For a general discount banner, each affected product's prior price can appear in its price section within the online shop interface. The banner itself need not list every prior price.

FAQ

Can I automatically use an exception for a new product?

The shorter period depends on national implementation of Article 6a(4). The provision gives Member States the choice to allow it.

Must I reset the prior price after a sale lasts 30 days?

Under the Commission's guidance, section 2.1, the reference remains the lowest price during at least the 30 days before the reduction when the sale continues without interruption.

Sources

  1. European Parliament and Council, "Price Indication Directive 98/6/EC", consolidated 28 May 2022
  2. European Commission, "Guidance on the interpretation and application of Article 6a of Directive 98/6/EC", 29 December 2021
  3. Court of Justice of the European Union, "Judgment in Case C-330/23, Aldi Süd", 26 September 2024

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