The French Directorate General for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF) has fined Boohoo €2,33 million. The British online clothing retailer was penalized following an investigation into its promotional practices in France. The announcement was made on Thursday, August 20, by the DGCCRF.
Investigators examined the prices of several hundred items sold on the platform. Their checks revealed practices considered deceptive regarding the actual discounts advertised to consumers. The advertised discounts did not always correspond to an actual reduction compared to the price previously charged.
Prices increased before discounts are applied
In some cases, Boohoo allegedly raised the price of an item of clothing before applying a discount, thus artificially presenting a larger promotion. The platform also reportedly failed to consistently take into account discounts applied during previous periods. These practices could give customers the impression of getting a better deal than the one actually offered.
This penalty serves as a reminder that retailers must be able to justify the reference prices used for their promotional campaigns. The aim of this regulation is to allow consumers to clearly assess the advertised financial benefit and compare offers. With this multi-million euro fine, the French authorities are also sending a warning to major foreign platforms operating in the French market.
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