Clearance sale

When the seller markets goods at a reduced price in a clearance sale, the marketing must indicate the lowest price at which the goods have been marketed in the 30 days preceding the price reduction. Once you know the previous lowest price, you can assess the affordability of the discount and the general price level of the seller’s goods. 

 

The reason for a clearance sale may be, for example, the termination of the trader’s business activities or the seller’s need to get rid of the stock of a commodity group or model that is to be eliminated from the seller’s range.

Terms comparable to clearance sales include closing sales and moving sales.

Goods previous lowest prices must be indicated in the marketing of clearance sales

When the seller markets goods at a reduced price in a clearance sale, the marketing must indicate the lowest price at which the goods have been marketed in the 30 days preceding the price reduction.

The aim is to make discounts and discount sales more transparent to the consumer so that the consumer can better assess the affordability of an individual discount or the general price level of the seller’s goods

The obligation to indicate the previous price also aims to prevent the seller from temporarily and artificially increasing the price of the goods and then offering the goods at a significant discount. This would create an impression of a unique high discount for the consumer, even though the goods has been sold at the same reduced price for a long time.

The lowest price of the goods must be indicated when the seller markets

• specific goods (including images of the goods and/or goods information) at reduced price
• a price reduction concerning a wider non-specific range of goods (for example, all hair care goods-50%)

If a continuous marketing campaign lasts for a maximum of 60 days and the price reduction is gradually increased, the seller may indicate the price at which the goods have been marketed in the 30 days preceding the first price reduction as the lowest price.

Marketing must not be misleading to the consumer

Using the term ‘clearance sale’ in a situation other than an actual situation is misleading to the consumer. For example, a temporary sales event may not be marketed as a clearance sale.

Using the claim that the trader is moving or terminating its business activities is forbidden in marketing if the claim is false.

Other forbidden expressions include such claims as ‘end of lease’ and ‘selling entire stock’ if the trader is not moving, terminating its business activities or the stock is not about to run out.

Restrictions on range of products during clearance sales

During a clearance sale, everything from the seller’s range must be on sale at a reduced price if the content of the clearance sale has not been limited or otherwise specified in marketing.

If the clearance sale is limited to a certain part of the seller’s product range,

•  the products in the scope of the clearance sale must be stated clearly in marketing and
•  the products sold at reduced prices must be marked clearly or separated from the products that are not within the scope of the clearance sale.