It makes sense that this prohibits doubling an item's price briefly then putting it back down and advertising it as 50% off
But if I'm understanding, this also means:
1. If you decrease a price incrementally you can only advertise a smaller discount (€100 -> €50 is "50% off", whereas €100 -> €50 -> €40 in same period can only be "20% off" because now €50 is a prior price)
2. You cannot advertise brief regular sales, like if you want to offer 50% off on the last friday of a month, because the previous sale was too close (even though it's at full price 97% of the time)
Which seem like unintentded consequences. I think using something like 25th percentile price over the last 60 days may have made more sense.
You can reduce it all you want. What you can't do is say "this house is 50% off" because you doubled the asking price for half an hour the previous week and then dropped it again.
It's a false advertising issue, not price controls.
Oh, I see. So the EU is just trying to outlaw the practice of marking the price up for a day so they can then mark it "50% off" the following day. Good for the EU. That practice stinks.
It makes sense that this prohibits doubling an item's price briefly then putting it back down and advertising it as 50% off
But if I'm understanding, this also means:
1. If you decrease a price incrementally you can only advertise a smaller discount (€100 -> €50 is "50% off", whereas €100 -> €50 -> €40 in same period can only be "20% off" because now €50 is a prior price)
2. You cannot advertise brief regular sales, like if you want to offer 50% off on the last friday of a month, because the previous sale was too close (even though it's at full price 97% of the time)
Which seem like unintentded consequences. I think using something like 25th percentile price over the last 60 days may have made more sense.
Are they trying to outlaw deflation now? I don't understand what they're trying to regulate. I can sell my property for whatever price I choose, no?
You can reduce it all you want. What you can't do is say "this house is 50% off" because you doubled the asking price for half an hour the previous week and then dropped it again.
It's a false advertising issue, not price controls.
This case was against Aldi, a discounter supermarket chain, about how they marked their price reductions. Real estate sales isn't affected.
Oh, I see. So the EU is just trying to outlaw the practice of marking the price up for a day so they can then mark it "50% off" the following day. Good for the EU. That practice stinks.