The American retail phenomena "Black Friday" and "Black Week" are once again making their way into Danish shops and online shops. For many businesses, Black Friday marks the beginning of an extended promotional period, continuing with Cyber Monday and the Christmas campaigns.
Businesses are, however, not free to choose the reference prices against which they compare their prices, or how long they will market a product as discounted. If the same products are to be included in several campaigns, it is therefore important to plan the prices carefully. A price reduction in November could, in fact, have a direct impact on how you are allowed to market the product in December.
The provisions of s. 9a of the Danish Price Labelling Order (prismærkningsbekendtgørelsen) together with the Danish Consumer Ombudsman’s guidelines on price marketing govern, among other things, how you may advertise price reductions on consumer goods such as clothing, foods and electronics.
The Consumer Ombudsman has also taken the position that the rules extend to consumer services where the marketing may be misleading under ss 5 and 6 of the Danish Marketing Practices Act (markedsføringsloven). The Consumer Ombudsman considers price reductions on, among other things, real estate, fuel, financial services, hotel stays, package holidays and similar items to be exempt.
Earlier this year, a fine of DKK 4.25m was imposed on a business for misleading marketing of special offers, including the use of incorrect standard prices and excessively long offer periods. The case underscores the importance of complying with the rules on price marketing and reference prices.
It is therefore advisable to plan Black Friday and Black Week campaigns with due regard to both the applicable rules and the subsequent Christmas campaign. Below is an overview of the most important considerations.
The price offered on Black Friday may affect Christmas sales
When advertising a price as reduced by reference to a previous price, that previous price must generally be the product’s standard price. This means that the reference price must be the lowest price at which the product was offered in the 30 days preceding the offer. This will be the product’s "standard price".
This also means that any price reduction on Black Friday may affect your next campaign. If you put the same product on offer again, the Black Friday price must generally be taken into account when assessing the reference price.
Once the standard price has been set, the product may, as a general rule, be advertised as reduced for up to 10 days. However, you may advertise the product as being on offer for an extended period if, at the start of the offer, you state its total duration. Any extension of the offer must be clearly identified as an extension. However, the offer period must not exceed half the period during which the product was sold at its standard price.
Any marketing comparing the offer price with a previous price must disclose the relevant standard price. The previous price need not bear the label "previous price" or "standard price", provided that the information is presented fairly and does not create a misleading impression of the saving.
Example: If a phone has been marketed at a standard price of DKK 5,000 for 50 days, the business may market it at a price of DKK 3,000 for 25 days or until XX-XX-2026. That will be allowed.
Short-term Black Friday offers may also be relevant
A short-term Black Friday offer is not without significance. The Black Friday price may become the lowest price in the 30 days preceding any subsequent price reduction. Accordingly, it may determine which standard price the business must use in its next campaign.
For example, if a business reduces the price of a product on Black Friday and then advertises it as discounted throughout December, it must take the Black Friday price into account when determining the relevant standard price. It is therefore important to consider more than the individual advertisement. Consider the campaign as a whole, from Black Week through to the Christmas sales, and check that the prices, periods and messages align.
Some offers do not necessarily affect the standard price
Personal discount codes and other individual discounts must be assessed separately. Relevant considerations include whether the discount is available to everyone or to a limited group only, and whether the marketing gives the impression that it is a general price reduction available to all consumers.
This also applies to introductory offers if you specify their duration and, immediately afterwards, sell the product at its standard price for at least 30 days. Combined offers must also be assessed on a case-by-case basis. For example, a pair of shoes and a jumper may be offered together at a price of DKK 600 as compared with a total price of DKK 1,500 if purchased separately.
Avoid wording that may suggest a price reduction
Words such as "sharp price", "strong price", "shock price", "super cheap", "best prices", "discount price" and "spot prices" do not, in themselves, necessarily suggest that the product was previously sold at a higher price. What matters, however, is the marketing as a whole. If the wording, graphics or overall context give the impression of a price reduction, you must state the lowest previous price.
Our perspective
A low Black Friday price may deliver immediate results, while making the planned Christmas campaign more difficult to execute. Accordingly, Black Friday, Cyber Monday and Christmas campaigns should be evaluated collectively.
The guidance issued by the Consumer Ombudsman also sets out several other requirements relating to price marketing, including requirements as to documentation, the use of the word "free" and progressive price reductions. It is therefore important to consider how your business applies and advertises discounts and offers, including for Black Friday and Black Week. Several decisions have been made by now, including decisions on fines for violation of the rules on price marketing following recommendations from the Consumer Ombudsman.
We will be pleased to assist you reviewing your campaign structure, pricing strategy and marketing material to help ensure that your Black Friday campaign is supported by proper documentation and is commercially viable.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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