Brussels, Belgium – The Economic Inspectorate of the Belgian Ministry of Economy has received more than 180 complaints about online fashion retailer Zalando since the end of 2020, with many consumers alleging misleading promotions and deceptive advertising tactics.
Investigations by the Belgian authorities revealed multiple violations, particularly concerning price indications and discount calculations. With Zalando headquartered in Berlin, German authorities were called upon to intervene at Belgium’s request.
During the summer sales of 2022, the Inspectorate identified irregularities in Zalando’s pricing practices. The e-commerce giant was found to have failed in mentioning reference prices and, instead, calculated discounts from the original price rather than the mandatory reference price.
According to EU regulations, a reference price is the lowest price at which a product was sold in the 30 days before a discount period. By omitting this crucial information, Zalando misled consumers about the actual extent of their savings.
Additionally, Zalando applied promotional labels such as “Deal” to products that had not actually been reduced from the correct reference price.
In some instances, discounts applied to only specific sizes or models within a product range, yet the promotional label suggested the deal applied universally.
Furthermore, some of the so-called “original prices” referenced on the website had not been in use for years, adding to consumer confusion.
Upon uncovering these violations, the Belgian Ministry of Economy sought action from German authorities to ensure compliance. While German regulators did not entirely align with Belgium’s position, the issue gained momentum at the European level.
On 26 September 2024, the European Court of Justice (ECJ) ruled in favor of Belgium’s interpretation of the reference price regulations, reinforcing the requirement for companies to base discounts on the lowest price in the preceding 30 days.
The ruling marked a significant win for consumer protection across Europe, setting a precedent for stricter enforcement of transparent pricing practices in online retail.
In response to the ECJ ruling, Zalando made modifications to its website to bring it into compliance with European standards.
“Zalando has since updated its website. Discounts are now correctly calculated based on the reference price, and consumers see only the genuine reductions,” said Étienne Mignolet, spokesperson for the Belgian Ministry of Economy.
The decision is expected to have a wider impact on e-commerce practices within the EU, as regulators continue to crack down on misleading marketing tactics.
Consumer advocacy groups have welcomed the ruling, urging other online retailers to review their pricing strategies to ensure transparency.
Zalando, one of Europe’s largest online fashion platforms, has not commented extensively on the ruling but acknowledged the website changes in accordance with the regulations.
The retailer emphasized its commitment to providing clear and fair pricing for consumers moving forward.
As authorities remain vigilant in monitoring compliance, the case serves as a warning to other digital marketplaces that misleading promotions and opaque pricing strategies will not go unchecked in the evolving European regulatory landscape.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members
