Unfair commercial practices affecting consumers and microenterprises
What constitutes a commercial practice
The choices consumers make can be influenced by the way traders promote, sell or supply goods and services. A commercial practice covers any act or omission, conduct, statement or marketing communication used by traders in their dealings with consumers. This includes advertising in all its forms, such as direct marketing and product packaging.
A commercial practice is unfair where it falls short of standards of professional diligence and distorts, or is likely to distort, the economic behaviour of the average consumer.
Under the Italian Consumer Code, unfair commercial practices fall into two main categories: misleading practices and aggressive practices.
Misleading practices
Consumers rely on accurate information to make informed choices. Misleading practices undermine this process by providing information that is false, unclear or incomplete.
Examples include misleading claims about price, availability, key features or safety risks, where this may lead the average consumer to take a decision they would not otherwise have taken.
A practice is also misleading if it causes consumers to disregard normal safety rules, for example by downplaying or omitting important health and safety information. This category also covers conduct that poses a direct or indirect threat to the safety of children or adolescents.
Misleading practices are defined in Articles 21 to 23 of the Italian Consumer Code.
Aggressive practices
Some practices make consumers feel pressured into making decisions. This can occur through harassment, coercion or other forms of undue influence.
Whether a practice is considered aggressive depends on its nature, timing and methods, including any use of physical or verbal threats. Aggressive practices are defined in Articles 24 to 26 of the Italian Consumer Code.
Practices that are always considered unfair
The Italian Consumer Code also identifies a range of practices that are always considered unfair, either because they mislead consumers or because they place them under undue pressure.
Practices that are always misleading may take different forms. These range from advertising a product at a specific price while refusing to accept orders for a certain period, to falsely claiming to hold all the necessary authorisations. They also cover situations where a trader claims that its business is about to close down or relocate, creating a misleading impression that its prices are unusually low.
Practices that are always aggressive arise where traders suggest that consumers cannot leave the premises without signing a contract, or make home visits despite a clear request to leave or not to return.
Misleading and unlawful comparative advertising affecting traders
Alongside its role in protecting consumers and microenterprises, the Authority also enforces rules governing certain advertising practices between traders, under Legislative Decree 145/2007.
Misleading advertising
The Authority protects traders against misleading advertising by other traders.
This type of advertising may take different forms, such as making false claims, presenting information in a way that is likely to deceive, or leaving out important details about a product or service. Such claims may relate, for example, to price, key features, availability, origin, or the conditions under which goods or services are offered.
Comparative advertising
The Authority enforces the rules on comparative advertising between traders. These rules are designed to prevent harm to competitors and ensure fair competition.
Comparative advertising involves promoting goods or services by directly comparing them with those of a competitor.
This is lawful only where the comparison is objective and relates to equivalent goods or services. It must not mislead consumers or create confusion between traders. Nor may it discredit or denigrate a competitor or its products. If these conditions are not met, comparative advertising is unlawful.