Recommended retail price
The recommended retail price (RRP) is the price recommended by the manufacturer or the preceding sales level and commonly applied to the consumer product in question.
Unless otherwise defined in marketing materials, the term “normal price” refers to the price previously applied to the same product in the same store.
Product groups may be marketed with the expressions “prices from” or “starting at”. These prices must include all the applicable charges, including delivery fees. Marketing is deemed to be misleading if only a few products are available at the starting price and the marketing materials do not indicate their quantity.
Generally speaking, only stores located in the same area as a product’s production plant may be called factory outlets. The prices of the products offered in these are cheaper than average, due among other things to lower storage and transport costs. The use of the term “factory outlet” implies that the majority of the products offered in the store were produced at the production plant in question. The remnant products sold in outlet stores have not been previously sold there at normal prices. Therefore, reference may not be made to discounts.
Two criteria apply to the use of the expression “wholesale price” in marketing:
- The prices must be cheaper than the prices offered to the consumer by other companies selling the same products.
- The prices must in fact be the wholesale prices at which the goods are sold to retailers.
Price guarantees (the promise to pay the difference should the consumer find the product in question cheaper somewhere else) may not be used in Finnish marketing. That is because it is not a price expression but comparative advertising. Comparative advertising may only be used if it fulfils the requirements given in the Consumer Protection Act of truthfulness, impartiality and propriety.