Polish retailer Biedronka fined with € 26 mln fine for violating consumer rights
According to the statement of the Office of Competition and Consumer Protection in Poland (UOKiK), Biedronka violated consumer rights for several years by charging higher prices at the checkout than displayed on the shelf or the lack of information about the price of the product. The President of UOKiK imposed a fine of PLN 115 million (approx € 26 mln) on the owner of the Biedronka chain - the company Jeronimo Martins Polska.
The Office of Competition and Consumer Protection received numerous consumer complaints regarding incorrect display of prices in Biedronka stores. Hundreds of signals concerned higher prices at the counter than on store shelves or the lack of prices on the goods. The complaints gave rise to the initiation of proceedings against Jeronimo Martins Polska. The findings of the Office show that the practice has been ongoing since at least 2016. Only the initiation of the procedure at the end of last year contributed to the actions taken by the owners of Biedronka, aimed at resolving the identified irregularities. The President of UOKiK will monitor the effects of implemented changes aimed at removing violations of collective consumer interests.
Different price at checkout than on the shelf
“Price is one of the most important criteria for consumers when choosing products. It is unacceptable to mislead consumers as to the correct price of the goods. In the case of Biedronka, customers for a long time most often paid more than the price on store shelves. They were not always aware of it” says the President of UOKiK, Tomasz Chróstny. “The differences in the price of one product could even amount to several zlotys. Considering that the practice lasted several years, consumers could suffer severe losses, and the owner of the Biedronka chain was unjustifiably enriched at their expense. The complaints also show that there have been situations in which sellers refused to recognize the claims of customers who, in accordance with their law, demanded to sell the product at a more favorable price for them, which they saw on the shelf.”
No price information
Each seller is also obliged to show the price of the goods. Preventing the consumer from knowing the price at the product selection stage is a serious violation of his right to reliable, truthful and complete information. Meanwhile, inspections of the Trade Inspection showed that in Biedronka stores on average as much as 14 %, goods had no price information.
Punishment on Jeronimo Martins Polska
In addition to the financial sanction of PLN 115 mln, Biedronka stores will also have to provide information about the rights of consumers in the event of a difference in the price on the shelf and at the checkout: In the event of discrepancies or doubts as to the price for the offered goods, the consumer has the right to demand the sale of the goods at the most favorable price for him ( Article 5 of the Act of May 9, 2014 on informing about prices of goods and services).
The decision is not final and may be appealed against to the Court of Competition and Consumer Protection.
Source: https://www.uokik.gov.pl/