unfair business practices

• European Union law protects consumers from unfair commercial practices
• A recent report, financed by the European Commission, notes that solutions to this situation must go "beyond self-regulation"

When purchasing products and services, European Union legislation protects consumers against unfair commercial practices, both in physical and digital stores.

The EU typifies two large types of unfair practices, against which buyers have protection:

• Deceptive practices, either by action (giving false information) or by omission (hiding important information)
• Aggressive practices to force buying

Most Common Unfair Business Practices:

advertising lures

It is forbidden to advertise products or services at a low price if there are not enough stocks. In addition, the actual availability of products and the duration of the offer must be stated.

Fake free offers

Sellers must communicate the actual price of their products and services. They are not entitled to say that a paid service is "free" or to offer "free" services if, in fact, the cost of such services is included in the price.

Manipulation of minors

Companies do not have the right to tell minors to ask their parents to buy their products. Direct messages such as "buy the book" or "tell your parents to buy you this game" are prohibited. The prohibition extends to all media, television and, in particular, the Internet.

False health properties

Whenever a product with therapeutic or health effects is advertised, you have the right to know if those alleged properties have been scientifically proven. In many cases, these are messages that are not supported by any medical evidence, such as "miracle products."

advertorials

When a newspaper article, television broadcast, or radio show is "sponsored" by a company to advertise its products, you have a right to know. It must be clearly indicated, either through images, text or sounds, avoiding being hidden ads.

pyramids

They are promotional systems in which you pay in exchange for the possibility of obtaining a benefit. But the benefit, in reality, is obtained above all by attracting more participants: the sale or consumption of products are secondary.

Fake gifts and prizes

You are not allowed to advertise "free" prizes or giveaways and then demand payment if you want to receive them. If you receive letters or emails with messages of the type "congratulations, you have been awarded, etc.", be careful as this is usually an abusive practice.

latest study

recently posted a report, funded by the European Commission, on practices by digital platforms that attempt to deceive, coerce or manipulate consumers into making decisions that are often not in their best interest.

This report highlights that these types of practices “are prevalent and increasingly used by companies of all sizes, not just by large platforms”, while “exposure to obscure patterns and manipulative personalization business practices lead to consumers to make decisions that they otherwise would not have made. It also notes that solutions to this situation must go "beyond self-regulation."