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Indication of Prices of Goods or Services

2014/04/11
4 minutes to read

In practice, queries may be encountered from traders regarding the proper indication of prices of goods or services when offering and selling them online. The issue of proper indication of prices of goods or services is relatively complex and is not the exclusive domain of online sales. Below we mention some examples of generally binding legal regulations which reflect the question of indicating prices. In this connection, it is then necessary to bear in mind also, for example, the legal aspects of unfair competition, etc.

Only cases of online sales are covered by the provision of Section 53(4)(d) of the Civil Code, which provides that “in negotiations conducted through a means of distance communication, the consumer must be provided, with sufficient time before conclusion of the contract, in particular with the following information: the price of the goods or services, from which it clearly follows whether it is stated including all taxes and fees, if they are to be added thereto…” However, this Czech legal regulation does not satisfy the requirements of Directive 97/7/EC of the European Parliament and of the Council on the protection of consumers in respect of distance contracts (hereinafter “the Directive”), specifically it does not satisfy Article 4(1)(c) of the Directive, which establishes that “prior to the conclusion of any distance contract, the consumer shall be provided with the following information in good time: the price of the goods or services including all taxes…” The provision of Article 4(1) of the Directive then states that information (not only) about the price “must be provided clearly and comprehensibly, in a manner appropriate to the means of distance communication used, with due regard, in particular, to the principles of good faith in commercial transactions and the principles governing the protection of those who are unable, pursuant to the legislation of Member States, to give their consent, such as minors.” It may be a question whether the concept of taxes for this case can include also payments of a different nature, for example payments of copyright remuneration in connection with reproduction of a work for personal use and one’s own internal needs pursuant to the provision of Section 25 of the Copyright Act or fees pursuant to the Waste Act (Act No. 185/2001 Coll., as amended), so-called fees for electrical waste.

Of other regulations which generally regulate the issue of indicating prices of goods or services (not only for the case of online sales), the following may be cited by way of example. The provision of Section 12(2) of the Consumer Protection Act (Act No. 634/1992 Coll., as amended) provides that “information about the price or the circumstance that the information is incomplete or missing must not in particular create the impression that: (a) the price is lower than it actually is, (b) the determination of the price depends on circumstances on which it does not actually depend, (c) the price includes deliveries of products, performances, works or services for which payment is actually made separately, (d) the price has been or will be increased, reduced or unchanged, even though this is not the case, (e) the relationship between the price and usefulness of the product or service offered and the price and usefulness of a comparable product or service is such as it is not in reality.”

Furthermore, it is also possible to mention the provision of Section 5(3) of Decree No. 580/1990 Coll., implementing Act No. 526/1990 Coll., on Prices, as amended, which provides that “marking of goods with a price when selling to the final consumer means equipping the goods with information about the price… so that the buyer has the opportunity to become acquainted with the price before negotiating the purchase of the goods.” Further specific obligations regarding the marking of individual types of goods with prices are contained, for example, in the provision of Section 13 of the Prices Act (Act No. 526/1990 Coll., as amended).

This text was translated from Czech to English using an AI translator.

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