Short Rules on Price Reduction Campaign in Czech Republic

Czech consumer protection law does not provide any kinds of price reduction campaigns.

Czech consumer protection law does not provide minimum content requirements for price reduction announcements, save for requirements on the display of the discounts (please refer to our answer to question 4 below).

No.

As a general rule, prices must be visibly indicated and must include the value added tax if the seller is a VAT payer. Before the conclusion of a contract, the consumer must be unambiguously informed about the total price for the product or service including all taxes, fees and other charges. Packaged products must be labelled with the price of the package and also with the price per unit of quantity. Unpackaged products offered by weight, volume, etc. which are measured in the presence of the consumer must be labelled only with the unit price. These rules also apply to prices quoted in advertisements for products offered to consumers.

Products in discounts, other than those liable to deteriorate or expire rapidly, must include not only information about the discounted price, but also about the lowest price of the products for which the seller offered and sold the products during the following periods:

• the 30-day period before the discount;
• the period when the goods were first offered until the moment the discount was provided, if the goods have been on the market for less than 30 days; or
• the 30-day period before the first provision of a discount in case of a progressive discount.

Misleading display of prices or discounts could be regarded as an unfair competition action.

Long-term offering and sale of products at unreasonably low prices which results or may result in the distortion of competition could be regarded as an abuse of dominant position.

Breaching requirements on pricing and discounts can be considered as an administrative offence punishable by a fine of up to CZK 5,000,000 (approx. EUR 200,000).