Minister Martine Hansen;
Credit: ©SIP / Claude Piscitelli
On Friday 22 December 2023, Luxembourg's Ministry of Agriculture, Food and Viticulture, and the Consumer Protection Directorate, confirmed that they had undertaken an in-depth investigation into price display in the luxury sector, during this end-of-year period when high-value gifts are on the rise.
The establishments were inspected nationally between April and November; the findings reveal a clear deficit in the display of product prices from controlled establishments, particularly from major luxury brands. The same applies to the display of service prices, such as the price in a jewellery shop for changing a battery, for example.
According to the ministry, it is essential to emphasise that, even for high-value products, price display must comply with the Consumer Code. This requirement aims, among other things, to guarantee total transparency, allowing the consumer to compare prices before making a purchase.
It should be noted that agents of the Consumer Protection Department adopt a collaborative approach during an initial inspection, offering professionals concrete solutions to comply with the provisions of the Consumer Code. This is why the Consumer Protection Department has published a “Guide for professionals”, available in several languages, and which contains free information material intended for professionals and which aims to make it easier for them to in accordance with the Code.
In this regard, Martine Hansen, Minister of Consumer Protection, emphasised "We are aware that displaying prices in accordance with the Consumer Code is not always easy, particularly in the luxury sector. But solutions exist and I am delighted that our agents are proposing concrete measures to merchants during inspections to comply with the Code. I am convinced that the best ally in the protection of consumer rights is close collaboration with professionals, thus building a relationship of mutual trust and placing transparency at the heart of exchanges".
Ahead of the year-end holidays, follow-up checks are already carried out by judicial police officers and/or the police in establishments presenting non-compliance in terms of price display. In this regard, it should be remembered that in accordance with article L.112-9 of the Consumer Code, in the event of non-compliance with the rules regarding price indication, tax warnings may be issued by officials of the Grand Ducal police. Criminal proceedings may also be initiated, and fines of 25 to €1,000 (or even €2,000 under certain conditions) are incurred.
With a view to long-term remediation of the problems identified and with a view to ensuring increased transparency for consumers as well as fair competition, a review meeting is planned with representatives of the sector. This meeting will aim to discuss the results of the controls and the problems observed, in order to deploy a targeted communication strategy among companies in the sector.
