The European Union gave Portugal an ultimatum: the government has two months to correct rules on price reductions and business practices. At issue is the way the country has transposed to National Law a community directive that aims to protect consumers and ensure transparency in promotions.
According to News to the Minute, the European Commission has sent a formal notification to Portugal, considering that Portuguese law goes beyond what is allowed by European standards.
National rules apply not only to the sale of goods, but also to services, something that the European directive does not foresee.
Brussels wants clear limits on promotions
The Commission considers that this approach exceeds the scope of the Price Indication Directive, which is intended for movable property only. According to the same source, when including services such as hairdressers, gyms or workshops, Portugal is violating the directive of unfair trade practices, which prevents member states from creating additional restrictions.
With this decision, Brussels intends to harmonize the rules between countries and ensure that consumers and companies operate under the same conditions.
The European executive has now given Lisbon a 60 -day period to correct the situation, otherwise he will advance to the next phase of the infraction process, which may include a grounded opinion or even appeal to the Court of Justice of the European Union.
What changes to the consumer
Community price reductions determine that when a company announces a discount, it must indicate the previous price practiced for a given period. The goal is to prevent misleading practices, such as inflating prices before announcing promotions.
According to the publication, all information must be clear and verifiable so that the consumer can evaluate if they are really benefiting from a discount.
The European Commission also underlines that these standards “aim to protect the consumer and ensure transparency in the domestic market”, promoting loyal and balanced business practices among all Member States.
Portugal has two months to act
In the absence of a convincing response, Brussels may issue a formal opinion and ultimately refer the case to the European Union Court.
According to the Portuguese government has not yet publicly reacted to the notification. However, sources in Brussels indicate that the intention is not to penalize, but to ensure that Portuguese law is in accordance with the community directives.
The two -month period begins from the official notification. If Portugal does not correct identified failures, discount and promotions campaigns may be the target of new rules as early as 2025.
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