Are Temu and Shein not following the Omnibus directive? Consumer Federation warns

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Are Temu and Shein not following the Omnibus directive? Consumer Federation warns

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The so-called Omnibus Directive has been implemented in Poland since the beginning of 2023. It imposes numerous obligations on entrepreneurs selling online, including, above all, the need to indicate not only promotional and previous prices, but also the lowest price in the last 30 days before the discount. This prevents prices from increasing before promotional periods (e.g. Black Friday, Christmas) and then “lowering” them, or creating the impression that the price is a bargain and limited in time, when it does not differ much from the regular price.

The Consumer Federation prepared a report on the Omnibus price marking. It was noted that not all sellers immediately complied with the regulations. This was largely due to the short time frame and the fact that the Polish implementation differed slightly from the content of the directive, expanding its scope. However, as experts from the Consumer Federation point out, most companies have already changed the practices questioned by the Office for Competition and Consumer Protection (in the proceedings initiated and in the submissions) and adapted the method of informing about price promotions to the provisions of the Omnibus Directive, but shortcomings and unacceptable practices still exist.

Breaking good sales practices, not following guidelines

This includes, among others: unfair forms of exerting purchasing pressure, such as deliberately non-intuitive promotions or countdowns on the website, suggesting the need to make a quick purchase decision. Such irregularities were detected during the analysis of the Shein and Temu platforms. “What is intriguing is the fact that all available products are presented as being covered by some kind of promotion, discount, ‘hot’ offer, limited offer or almost sold out. Such an operating model is prohibited”, reads the report “17 months of validity of the Omnibus price” prepared by the FC.

We have analysed almost 1,600 offers on these platforms. Our experts have found situations where good sales practices could be violated and EU regulations were not followed. On this basis, we have asked the Office for Competition and Consumer Protection to look into this issue – emphasises Michał Herde, Member of the Board of the Consumer Federation.

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