Showroomprivé gets fined for fake discounts

Flash sales provider Showroomprivé is fined 600,000 euros by the French consumer watchdog for advertising fake discounts for years.

What discounts?

Some of the discounts that Showroomprivé displayed on its website between 2015 and 2020 were false, French consumer authority DGCCRF concluded after an extensive investigation in which it uncovered price reductions based on misleading reference prices.

Although there is often little clarity about which are the original prices from which discounts are calculated, false discounts are by law a misleading commercial practice and therefore actionable. Consequently, Showroomprivé will be fined 600,000 euros, trade website LSA announces.

To avoid future discussions, a recent European Omnibus Directive provides retailers with stricter guidelines. Since then, the reference price for promotions must be the lowest price in the past thirty days.