The online private sales site for major brands Showroomprivé was fined 600,000 euros for “false promotions”, announced Tuesday the service of the Repression of the frauds (DGCCRF). After a long investigation carried out between 2015 and 2020 on the commercial practices of this site, the agents noted that certain products were the subject of “false promotions”, specifies the DGCCRF in a press release.
These facts constitute the offense of deceptive commercial practices “in so far as (they) alter the judgment of the consumer in his act of purchase”, adds this service of the Ministry of Economy and Finance. With the agreement of the Bobigny public prosecutor’s office (Seine-Saint-Denis), the DGCCRF imposed a transactional fine of 600,000 euros.
“Old Facts”
“This investigation relates to old facts”, reacted to AFP Showroomprivé, recalling that it concerned “the pricing policy carried out by many e-commerce players”. Insisting on “the fairness and sincerity of (its) pricing policy”, the company assured that “a dedicated team carries out daily work of reinforced control of the reference prices, in order to ensure our members accurate information on the reductions announced.
Showroomprivé’s annual turnover reached 657.4 million euros last year, down 9.2% compared to 2021 but up 6.8% compared to 2019. SRP group, owner of the Showroomprivé site, saw its net profit drop sharply in 2022 and fall to 300,000 euros. He highlighted “a difficult market environment”, supply problems and the context of inflation.
The settlement fine is presented by Bercy as a quick and effective solution to anti-competitive practices. Companies, authors of such practices, which refuse a financial transaction proposed by the DGCCRF, run the risk of a heavier financial sanction.