This year, shops are facing several new legislative changes and the essential concern are discounts. Join us for a look at what impact the upcoming changes to the rules for displaying and calculating discounts on FAVI will have.
New legal rules for discounts
Until recently, discounts were not influenced by anything. However, this changed on 6 January 2023, when an amendment came into force, bringing changes to the Consumer Protection Act and the Civil Code.
The newly introduced rules are designed to help eliminate artificial price inflation before discounting, and retailers will be required to make all discount announcements from the lowest price at which they have sold goods in the 30 days prior to the discount.
How do we display discounts on FAVI
We also reflect these changes and therefore the system of displaying discounts for products on FAVI has been modified.
The discount is still automatically generated based on the price reduction in the XML feed and no special entry is needed. However, the percentage discount will be calculated from the lowest sale price in the last 30 days, not the last listed sale price.
The maximum period for which the FAVI discount can be retained is 30 days.
Examples of discount calculations
Example 1: One price change
The e-shop offers customers a chest of drawers for CZK 10,000. Subsequently, the e-shop discounts it to 8 000 CZK in the XML feed, which creates a label with a 20% discount.
After 30 days, the discount label will be removed and the price will be presented as a regular sale price.
Example 2: Repeated price changes
The e-shop offers customers a chest of drawers for CZK 10,000, which will then be discounted to CZK 8,500 as part of a weekend promotion. After this event, the chest of drawers is offered again for CZK 10,000. Before 30 days have passed since the end of the weekend promotion, the chest of drawers is discounted to CZK 8,000. In this case, the percentage discount will be calculated on the lowest sale price of the last 30 days, i.e. CZK 8,500.
Example 3: Gradual reduction with a previous price increase
The e-shop offers customers a chest of drawers for CZK 10,000, which it discounts to CZK 7,000. After 10 days, however, the price in the XML feed was increased to CZK 8,000, thus losing the discount label. Then, after a week, it lowers the price again to CZK 6,000, in which case the discount is calculated from the lowest selling price over the last 30 days, i.e. CZK 7,000.
If you have any questions about discounts, please do not hesitate to contact your Account Manager or write to our email.
You can find more useful information on the FAVI help page.