Poland's consumer watchdog levies multi-million fine on Zalando, Temu

Poland's Office of Competition and Consumer Protection (UOKiK) has imposed nearly PLN 37 million (EUR 9 mln) in fines on online retail platforms Zalando and Temu for failing to properly inform consumers about price histories during promotions.

Photo: PAP/Tomasz Gzell
Photo: PAP/Tomasz Gzell

The UOKiK said on Monday that both companies had breached consumer protection rules by not displaying the lowest price from the previous 30 days, a requirement designed to prevent artificial discounts that exaggerate the attractiveness of sales.

Reacting to numerous customers' complaints, the regulator found that the German e-commerce platform Zalando repeatedly manipulated the reference price used for discounts, prompting a fine of PLN 31 million (EUR 7 mln).

Chinese-owned Temu was penalised nearly PLN 6 million (EUR 1 mln) for similar practices. Neither decision is final and both companies may appeal.

"Businesses are obliged to clearly inform consumers about discounts and promotions," Tomasz Chrostny, the UOKiK president, said in a statement. "Presenting price increases as bargains and selectively or manipulatively advertising discounts must stop."

The consumer protection agency announced that it is currently conducting six similar proceedings in which charges have been brought against Media Markt, Sephora, Glovo, Shell Polska, AzaGroup (operator of the Renee and Born2Be brands) and Jeronimo Martins Polska, the owner of the Biedronka supermarket chain. (PAP)

aj/jch

Publicly available PAP services