Practice Areas: Competition, Regulatory and EU

Type: Articles

Amendment to the Rules on Commercial Practices with Reduced Prices

Decree-Law No. 109/2019, amending Decree-Law No. 70/2007, on Commercial Practices with Reduced Prices was published on 14 August.

The amendments introduced by this decree-law seek to simplify and harmonise the procedures to be adopted by traders as part of reporting to the Economic and Food Safety Authority (ASAE) of the sale of products at sale or clearance prices, and to promote greater transparency in the relationship between the consumer and the trader.

This decree-law comes into force 60 days after the date of its publication.

What will change?

  • The concept of “lowest price previously practiced” is introduced. This refers to the lowest price at which the product was sold, outside of any sales or promotions periods, in the 90 days prior to the day it is put on sale at the sale or promotion price.

  • The concept of “percentage of reduction” is introduced. This refers to the percentage of reduction in relation to the lowest price previously practiced or, in the case of a product that has not previously been sold by the economic operator in that establishment, in relation to the price to be practiced after the reduced price period.

  • Besides having the burden of presenting documents that prove the price previously practiced, the Economic Operator also has the burden of presenting documents relating to the more favourable terms.

  • The sale of products at sale prices may take place at any time of the year provided that, counted as a whole, these sales are not practiced for more than 124 days per year, instead of four months per year as was previously the case.

  • It is now possible to have promotions at the same time as sales.

  • Mandatory prior notification of the sale of products at sale or clearance prices is only possible, from now on, via the Portugal Portal, available at www.eportugal.gov.pt.

  • The minimum amount of fines due for the practice of administrative offences by legal persons, in breach of the provisions of Article 3(3) and (4) and Articles 4 to 14, is reduced from EUR 2500 to EUR 250.