As sales approach, many brands use a well-honed technique: increase the price of items just before applying promotions. A way to display massive discounts, while maintaining a significant margin. Problem, this technique is illegal because it misleads the consumer. And the authorities are keeping an eye on the grain, a vigilance for which Showroomprivé has paid the price.
From 2015 to 2020, the agents of the Fraud Repression – the DGCCRF – looked into the commercial practices of the website, which sells branded items at a lower cost. However, “this investigation revealed price reduction announcements based on the highlighting of misleading reference prices for the items sold on its site”, specifies the organization in a press release released on Tuesday. “False promotions constituting an offense of deceptive commercial practices”, notes the DGCCRF. The institution has sent its results to justice, and the company is therefore fined a transactional fine of 600,000 euros, with the agreement of the Bobigny prosecution.
“This investigation relates to old facts”, reacted Showroomprivé, recalling that it concerned “the pricing policy carried out by many e-commerce players”. Insisting on “the fairness and sincerity of (its) pricing policy”, the company assured that “a dedicated team carries out daily reinforced control work on reference prices, in order to provide our members with accurate information on the reductions announced.
The fine remains derisory compared to Showroomprivé’s annual turnover, which reached 657.4 million euros last year, down 9.2% compared to 2021 but up 6.8% compared to 2021. compared to the year 2019. The SRP group, owner of the Showroomprivé site, saw its net profit drop sharply in 2022 and fall to 300,000 euros. He pointed to “a difficult market environment”, supply issues and the backdrop of inflation.
