The Omnibus Directive and car dealers: a guide to new obligations and challenges

The introduction of the Omnibus Directive represents a significant change for the dealership industry, especially in the context of price transparency and consumer rights protection. In this article, we will examine what obligations car dealers have under the new regulations, as well as what steps they should take to avoid financial penalties.

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What is Omnibus?

A key aspect of the directive is the obligation to report the lowest price of a good or service that was in effect during the 30-day period before the discount was introduced. This applies to all sales channels, including stationary sales, online advertising, social media and even individual offers sent by email.

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Prices are to be announced in an unambiguous, unambiguous manner that allows price comparison. They can be a combination of a verbal and graphic message or one of the two.

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Omnibus in dealer networks

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Automobile dealers must ensure that information on the price of products and services is easily accessible and understandable to the customer, avoiding vague wording or presenting it in a vague way.

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The directive's provisions do not differentiate between new and used goods, so we apply the same rules to both new and used cars.

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If a car dealer wants to reduce the price of a car, he must provide three values:

• Reduced sales price (i.e., promotional price)
• The lowest price from 30 days before the reduction
• Regular / list price

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Misrepresentation of prices

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Incorrect price reporting includes hiding the lowest price, miscalculating discounts, and manipulating prices just before a discount is introduced.

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Leasing offers with benefits

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If the lease offer does not use wording suggesting the opportunity or temporary nature of the promotion (and does not actually apply a price reduction), it only presents the standard terms of the offer without the promotional price. In such a situation, the provisions of the Omnibus Directive do not apply.

On the other hand, if you are promoting an installment system with a discounted price, it is necessary to specify the lowest installment in effect in the last 30 days before the promotion.

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Service packages - bundled or conditional sales

The obligation to inform about the lowest price of the last 30 days before the reduction does not apply to conditional or bundled offers, under which the trader does not provide information about the reduction of the price of a specific good.

Examples of such promotions:

• "Buy for £100, get 10% off".
• "Buy 2 products, get the third free".
• "3 for the price of 2"

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In these cases, the trader does not inform about the reduction in the price of a particular commodity, so there is no obligation to indicate the lowest price of the last 30 days before the promotion.

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Presenting customer feedback

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Another important aspect is how customer reviews are presented. Dealers should indicate whether reviews are verified and how. If verification is not carried out, this should be made clear. It is also important that the reviews presented are authentic and not manipulated to inflate the rating.

To ensure the reliability of reviews, businesses can use various methods to verify the authenticity of consumer reviews.

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Financial penalties

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If a trader fails to comply with obligations to inform about a price reduction, including when advertising goods or services, a fine of up to PLN 20,000 may be imposed.

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If an entrepreneur violates these obligations at least three times within 12 months (counting from the first finding of violation), the penalty can be up to PLN 40,000.

To avoid financial penalties, dealers should first and foremost keep accurate pricing records, train staff on new regulations and monitor regulatory changes.

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The penalty for an entrepreneur who violates the collective interests of consumers can be up to 10% of the turnover achieved in the fiscal year preceding the year in which the penalty is imposed.

In contrast, the penalty imposed on a corporate officer who intentionally violated these interests can be up to PLN 2,000,000.

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OCCP inspections and dealer documentation

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In the event of an inspection by the OCC, the dealer should be prepared to quickly provide all required documents and give detailed explanations.

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Pricing records should include information on current and past vehicle prices, a history of price changes (e.g., before and after promotions), and evidence of the veracity of discounts, including verification of the lowest price over the past 30 days. 

Sales invoices and customer contracts that confirm prices, promotional terms and warranties must also be kept. Marketing materials, such as advertisements, price lists and flyers, must be legal and accurate.

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Return and complaint policies should comply with consumer regulations, and transparency of information documents ensure that the dealer fairly communicates prices, discounts and terms of sale, in accordance with the Omnibus Directive.

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Omnibus - challenge or opportunity?

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The Omnibus Directive poses a challenge for car dealers, but at the same time provides an opportunity to build greater trust on the part of customers through transparency and integrity in presenting prices. Dealers who align their practices with the new regulations can gain a competitive advantage and avoid costly penalties.