Italy: AGCM probes "Made for Outlet" pricing practices

21 May 2025    1 minute read
Made for Outlet Unfair Commercial Practice

In brief

In April 2025, Italy's competition authority (AGCM) launched an investigation into a clothing retailer over alleged unfair commercial practices. The company is accused of using dual-price tags—featuring a crossed-out higher price—to allegedly suggest discounts on items that were never actually sold at the inflated price. This potentially misleading tactic could deceive consumers into believing they are receiving a bargain. The case highlights AGCM's heightened scrutiny of "Made for Outlet" pricing strategies and broader efforts to prevent retailers from artificially inflating prices before discounts to create a false impression of savings. It also illustrates the increasing coordination between regulatory bodies, as authorities work more closely to detect and address cross-border practices that may mislead consumers or distort market competition.

Contents

Key takeaways

The AGCM's investigation highlights several key points:

  • Price promotions and related advertising claims have become increasingly central to the AGCM's enforcement activities. This focus reflects the critical role that pricing and the authenticity of advertised discounts play in enabling consumers to make informed comparisons and select the most competitive offers. Even prior to the implementation of the Omnibus Directive on "price reduction announcements" (now governed by Article 17-bis of the Consumer Code), the AGCM had already taken action against misleading practices. These included deceptive representations of market prices and manipulations of the so-called "reference price." Notable examples include cases PS11852 in 2022, and PS12363, PS12364, and PS12362 in 2023.
  • Products specifically manufactured for outlet stores—commonly known in commercial practice as "Made for Outlet"—are no exception. For such products, it is crucial to clearly disclose that any stated full selling price serves solely as a "reference price." This requirement is consistent with the Guidelines on the interpretation and application of Article 6a of Directive 98/6/EC of the European Parliament and of the Council on consumer protection in the indication of product prices (2021/C 526/02).
  • The proceedings highlight the increasing trend of collaboration between the AGCM and other national authorities in the field of consumer protection. In this case, as noted in the official press release, the investigation was initiated following a report from the Livorno Customs Office, which had intercepted products arriving from Tunisia bearing double price tags. This is not an isolated instance: last year, the Authority launched two investigations, prompted by actions of the Public Prosecutor's Office and the Court of Milan, into two groups operating in the luxury sector. These investigations concern allegedly misleading claims regarding ethical and social responsibility, particularly in relation to working conditions and legal compliance among their suppliers.
Contact Information
Andrea Cicala
Partner
Milan
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andrea.cicala@bakermckenzie.com
Giacinto Zampetti
Counsel
Milan
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giacinto.zampetti@bakermckenzie.com

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