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How Omnibus Directive is changing campaign pricing in EU and what is our approach to Omnibus compliant pricing

Our approach to Omnibus compliant pricing

What is Omnibus compliant pricing?

Start preparing for omnibus compliant pricing! Running a pricing campaign on your website or retail store will permanently change across the EU on 28.5.2022 when the Omnibus Directive enters into force. 

What was the Omnibus Directive again? Enforcement and Modernisation directive 2019/2161 (better known as Omnibus-directive) is an EU directive that aims to reinforce consumer rights via enforcement measures and increased transparency requirements. The main aim of the omnibus directive is to enhance the protection of consumer rights across the European Union.

The changes that come with the directive and omnibus compliant pricing affect significantly the following elements of retail and e-commerce:

  1. Information regarding price reductions (discounts) have to be more transparent.
  2. Seller information has to be extended, customers have to know who they are actually buying from.
  3. Fake customer reviews or endorsement are prohibited, all customer reviews have to be authentic.
  4. Retailers have to inform customers about the use of methods of providing customers with personalized prices as a result of automated decision-making and consumer profiles such as price optimization algorithms.

The directive unifies and modernizes the existing EU consumer protection legislation. Consumers are given the long-waited opportunity to exercise their consumer rights more broadly whereas retail and online businesses are required to follow a strict set of rules to ensure increased transparency in marketplaces.

Legal Research Paper on Omnibus Directive and Pricing

We gathered a legal research project and you are able to get further information by downloading the ebook from the below link. 

Omnibus Directive Legal Reasearch Paper

How does our legal module make sure that you have omnibus compliant pricing?

Our pricing campaign tool already collects each price point of our customers’ products every day which makes it quick and simple to show Omnibus prices in your online store.

 

How Omnibus Prices are shown in Sniffie Pricing Campaign Tool
How Omnibus Prices are shown in Sniffie Pricing Campaign Tool

So, to start off we set up an integration between our service and your Ecommerce platform. Some we have ready made integrations such as Shopify. This way we get access to the price information and price history of your products. Once we have the integration up and running we can calculate the omnibus price for your products. To clarify, we only calculate the omnibus compliant price for you, it’s up to you to make sure that the price is visible on your website! Naturally we can consult on how the price should be shown and could be shown on the website.

Whenever prices are updated via integration, we recalculate the omnibus price for the product(s). We also recalculate this information whenever the date changes. We also calculate the omnibus price for your products regardless of the fact if they are currently on sale, so the information is available everyday for all your products. This allows you to fetch the omnibus price to your system before you add a product on sale which in turn will give you more direct control over planning for campaigns.

You are able to get omnibus information via a separate API endpoint (filterable by SKU), or can view those in our UI. We calculate and keep the Omnibus information up to date, and you can just fetch the information via our API after you have made changes and recalculation has been completed.

Discount codes in Sniffie
How the discount codes show up in Sniffie. Those can also be added from Sniffie.

Discount coupons, discounts codes or vouchers have raised a lot of discussion related to the directive. How do we deal with these coupons?

  • Regardless of market, we take into account discount coupons and coupons that are generally accessible (i.e. not private coupons).
  • We may be able to get the information about your discount coupons via integration, or if not possible, a copy can be added via our UI.
  • Any time coupons are added / deleted or coupon-to-product relations are edited, we recalculate the omnibus price for your product(s).
  • Coupons that apply for normal priced products only, as well as for all products are taken into account separately.
  • Coupons can be global (i.e. applied to all products) or for selected products only.
  • If you are using Sniffie’s pricing module, you are able to select Omnibus price (with coupons or without coupons) as an option when scheduling price pushes.
  • Since we provide information for all products with and without coupons taken into account, it’s up to you to select which price(s) you show on your online store. This depends on the country you operate in. Read our Omnibus Ebook below for a quick start on how different countries have applied Omnibus directive in their own legislation.

What are the requirements for using the module?

  • An integration between our service and your Ecommerce platform is required.
  • At least 30 days of history is required for full legal compliance (i.e. integration needs to be live for 30 days, since otherwise we don’t know the price of any product that did not sell anything, as there is no entry in the receipt data),
  • When using coupons we need information about the ones that are valid until further notice and coupons that have a specific start & end date. If your integration does not support importing coupons, you need to add some manually in our UI (note that you don’t need to create all, just the ones with biggest discounts).

If you are looking for a solution for your pricing campaign or need more information on the subject you can easily book a meeting with us to discuss further how to solve the issue.

Ensuring Price Display Compliance

Make sure to adhere to the Omnibus Directive when reducing the price of your products.

Omnibus App

Make Your Store Compliant in a Few Clicks

If you are a Shopify or a BigCommerce seller, look no further for a quick and efficient solution for your promotions!

The Omnibus Price application automatically tracks and displays the lowest price over 30 days when products are on discount. The lowest price over 30 days includes Shopify discount codes. The timeframe for the lowest price and the campaign duration can be extended and adjusted in compliance with the laws of your country.