Retailers' price deceit continues despite law change

The stores continue with the price scam. The law amendment that was supposed to counteract false campaign prices has not had any effect, shows a fresh report from the Consumer Agency.

» Published: September 02 2024

Retailers' price deceit continues despite law change
Photo: Christine Olsson/TT

Red prices and big discounts are often not what they seem. The daily goods trade and e-commerce are still not following the law that is supposed to ensure that consumers are not misled, according to the Consumer Agency's report.

In 2022, the price information law was changed so that the previous price should be stated during sales, and it should be the lowest price within the last 30 days. Companies are supposed to be prevented from raising prices before discounts so that the sale price does not seem more favorable than it is. Six out of ten reviewed e-commerce companies do not follow the law.

We are not surprised that the figures are high, as the report confirms what we have seen in various supervisory efforts during the year, says Johan Ohlsson, unit manager at the consumer protection department.

Risks damaging trust

The problems affect almost all markets. Incorrect lowest prices were stated for 59 percent of reviewed products in e-commerce, something that persisted in a follow-up several months later.

Physical grocery stores do not show previous prices or do so in an unclear way, according to the report. Johan Ohlsson sees risks that consumers do not get the opportunity to compare prices.

You make decisions based on incorrect grounds when you're out shopping and maybe make purchases you wouldn't have made otherwise.

Marketing that highlights price advantages has a big impact – which becomes a problem if it's not true, according to Johan Ohlsson.

It risks consumers losing their sense of what a product should cost, trust in price reductions decreases, and continued violations negatively affect competition in the market and disadvantage businesses that do the right thing.

Fake prices despite authority decisions

The authority's work has led to around 90 cases where companies have been forced to remove marketing for products. But they still don't get in line and continue to break the law with other products. Johan Ohlsson dismisses the idea that the violations are due to ignorance:

This legislation should be known to everyone by now. Companies have an obligation to know what legislation applies to the marketing they conduct.

The Consumer Agency now hopes for a good dialogue with the trade organizations – which claim that the problem is not particularly common.

We will present the report to the trade organizations and it will be a discussion about their picture linked to what we have seen. It's a question that the trade organizations must answer. In the report we deliver, it's clear that there are major deficiencies.

Generally, it's a good idea as a consumer to follow the price development of the product. Then you get the price history, even if the company doesn't show the lowest price within the last 30 days.

When shopping online, it's recommended to use price comparison websites.

When shopping in physical stores, you can ask for the lowest price of the product within the last 30 days, as the consumer has the right to receive the reference price.

Source: Consumer Agency

Tags

TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Saab Secures 880 Million Kronor
1 MIN READ

Saab Secures 880 Million Kronor Order for Combat Vehicle Systems

Trump Tariffs Threaten to Hike
1 MIN READ

Trump Tariffs Threaten to Hike Coffee Prices in the US

Trump's New Tariffs Spark Global
2 MIN READ

Trump's New Tariffs Spark Global Criticism and Economic Concerns

Kent Concerts Spark Hotel Market
1 MIN READ

Kent Concerts Spark Hotel Market Boost in Stockholm

US Boosts Norwegian Salmon Imports
1 MIN READ

US Boosts Norwegian Salmon Imports Before Tariff Decision

IT Sector Sees Reduced Work
1 MIN READ

IT Sector Sees Reduced Work Hours and Pay Increase in New Agreement

Service Sector Slows as Index
1 MIN READ

Service Sector Slows as Index Drops Below 50 in Sweden

Kristersson Urges Action Over US
2 MIN READ

Kristersson Urges Action Over US Tariffs, Calls for EU-US Trade Talks

Economist Urges Swedish Savers to
2 MIN READ

Economist Urges Swedish Savers to Hold Steady Despite Tariff Impact

Stockholm Stocks Dip 2.5 Percent
2 MIN READ

Stockholm Stocks Dip 2.5 Percent After Trump's Tariff News

Stock Market Faces Uncertainty After
2 MIN READ

Stock Market Faces Uncertainty After Trump's Tariff Announcement

Food Prices Stabilize as Supermarkets
3 MIN READ

Food Prices Stabilize as Supermarkets Compete for Shoppers

EU Prepares Countermeasures as US
2 MIN READ

EU Prepares Countermeasures as US Tariffs Threaten Global Economy

Gold Prices Soar to Record
1 MIN READ

Gold Prices Soar to Record Highs Following Trump's Tariff News

Colombia Plans to Acquire Swedish
1 MIN READ

Colombia Plans to Acquire Swedish Gripen Fighter Jets

Tokyo Stocks Drop Sharply Following
1 MIN READ

Tokyo Stocks Drop Sharply Following US Tariff Announcement

Global Leaders Rally Against Trump's
3 MIN READ

Global Leaders Rally Against Trump's Tariffs to Avert Trade War

US Finance Minister Urges Nations:
1 MIN READ

US Finance Minister Urges Nations: Hold Off on Retaliating to Tariffs

Trump's Tariffs Higher Than Expected,
2 MIN READ

Trump's Tariffs Higher Than Expected, Experts Warn of Lingering Uncertainty

Sweden Ready to Tackle Trump's
2 MIN READ

Sweden Ready to Tackle Trump's EU Tariffs, Says PM Kristersson

Trump's Tariffs Spark Global Economic
2 MIN READ

Trump's Tariffs Spark Global Economic Uncertainty, Experts Warn

Trump Announces 20 Percent Tariffs
3 MIN READ

Trump Announces 20 Percent Tariffs on EU Goods

APM Terminals Acquires Key Railway
1 MIN READ

APM Terminals Acquires Key Railway by Panama Canal

Volvo CEO Calls Trump's Tariffs
2 MIN READ

Volvo CEO Calls Trump's Tariffs a Messy Challenge for Swedish Industry

Amazon and AppLovin Eye TikTok's
2 MIN READ

Amazon and AppLovin Eye TikTok's US Operations for Acquisition

Wall Street Gains as Investors
2 MIN READ

Wall Street Gains as Investors Await Trump's Tariff Announcement

Tesla Sales Plummet in Q1,
1 MIN READ

Tesla Sales Plummet in Q1, Miss Analyst Expectations by Wide Margin

US Private Sector Adds 155,000
1 MIN READ

US Private Sector Adds 155,000 Jobs in March, Surpassing Expectations

China Limits US Investments as
1 MIN READ

China Limits US Investments as Trade Tensions Rise

Ben & Jerry's Co-Founder Seeks
2 MIN READ

Ben & Jerry's Co-Founder Seeks to Reclaim Brand from Unilever

Nintendo Switch 2 Launches June
1 MIN READ

Nintendo Switch 2 Launches June 5 with New Games and Features

Northvolt Labs in Västerås to
1 MIN READ

Northvolt Labs in Västerås to Lay Off 550 Employees

FI Warns of Rising Fees
2 MIN READ

FI Warns of Rising Fees for Housing Associations as Costs Climb

Volvo Cars Sees 10 Percent
1 MIN READ

Volvo Cars Sees 10 Percent Drop in March Sales, Electric Models Hit Hard

Stockholm Stocks Slide as Tariff
2 MIN READ

Stockholm Stocks Slide as Tariff Concerns Hit Major Companies

Genre image
1 MIN READ

Systemair CEO Roland Kasper Steps Down After a Decade

Dustin Announces Billion-Kronor Boost as
1 MIN READ

Dustin Announces Billion-Kronor Boost as Shares Drop 7 Percent

Folksam Divests Tesla Shares Over
2 MIN READ

Folksam Divests Tesla Shares Over Swedish Labor Dispute

Trump Set to Announce New
2 MIN READ

Trump Set to Announce New Tariffs as Global Markets Brace

Stockholm Stock Exchange Faces Decline
1 MIN READ

Stockholm Stock Exchange Faces Decline as Futures Point Downward