European Commission announced the Price Indication Directive in the form of DIRECTIVE 98/6/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 16 February 1998 on consumer protection in the indication of the prices of products offered to consumers.
The main purpose of this directive is to protect the rights of the consumers of the European Economic Area (EEA) by providing transparent and correct information to them. It is having different obligations to indicate the selling prices and the unit pricing of the product as well.
After that, the council announced another directive which is DIRECTIVE (EU) 2019/2161 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 27 November 2019. It is focused on the different penalties and introduced more amendments in article 6A.
The European Price Indication Directive (PID) is a directive of the European Union that requires businesses to include certain pricing information on their products and services. The directive was introduced in 1998 in order to ensure a fair and transparent pricing environment for consumers in the EU.
The PID requires businesses to include the list price, the unit price, and any applicable discounts or surcharges on their products and services. This pricing information must be clearly displayed to consumers so that they can make informed purchasing decisions.
The directive has had a significant impact on eCommerce in the EU, as businesses are now required to include detailed pricing information on their websites. This has made it easier for consumers to compare prices and find the best deals. It has also made it more difficult for businesses to engage in price discrimination, as they must now display their prices to all consumers.
The European Price Indication Directive is an important piece of legislation that has had a positive impact on eCommerce in the EU. It has made it easier for consumers to find the best deals and has prevented businesses from engaging in price discrimination.
The first step is to display the lowest offered price of a product in the last 30 days. And to do this, there are a couple of ways in different eCommerce platforms. Like, you can add this information directly for every product.
But adding this information manually is a tedious process. As in this case, you need to maintain the record of every price reduction in a separate system. The best effective way is to make the required modifications within the eCommerce platform itself.
For this, the platform will be modified to find the lowest offered price in the last 30 days and display it accordingly for every product individually. In case, you are using any headless eCommerce then a similar workflow can be applied to the respective integration.
After reading this article, you should be able to understand the implications of the new E.U Directive on eCommerce. For the purpose of the Directive, the European Commission defined eCommerce as the activity that is carried out by a trader when it offers, on a website or app, for sale products to consumers in the E.U.
The Directive does not regulate the practices of traders that are not established in the E.U. Therefore, for traders established abroad, it will not have any direct impact. However, the Directive does have an indirect impact on global eCommerce.
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