How to manage the Omnibus Directive in your dynamic pricing strategy

What is the Omnibus Directive?

It is Directive (EU) 2019/2161, which entered into force in January 2020 and whose obligations have applied since May 28, 2022. Its aim is to prevent aggressive or misleading commercial practices that lead consumers to make decisions based on unreliable information. It applies both to businesses based in the EU and to those selling goods, services or digital content online to European consumers from outside the EU.

What does the Omnibus Directive require on pricing?

It requires transparency in price reductions and in personalized pricing:

• Prior price in price reductions: when announcing a price reduction, the prior price displayed must be the lowest price applied in the 30 days before the reduction.
• Discount calculation: since the Court of Justice of the EU ruling of September 26, 2024 (Case C-330/23, Aldi Süd), the discount percentage and any message highlighting the offer must be calculated on that lowest price, not on the last selling price (Noerr).
• Personalized pricing: if the price has been personalized for a shopper through automated decision-making, for example based on their profile or history, they must be informed.

The aim is to prevent price manipulation and fake discount campaigns with eye-catching calls to action but no genuine reductions. The directive allows some exceptions, for example for perishable goods, which each country specifies when transposing it.

How is a discount calculated under the Omnibus Directive?

On the lowest price of the 30 days before the reduction, not on the price immediately before it. An example:

Can you use dynamic pricing and comply with the Omnibus Directive?

Yes. Machine learning pricing tools and automated repricing remain valid, provided the ecommerce business records its price history and shows users the information the regulation requires. Some options:

• Create an internal price comparison feature that shows how your product prices have changed.
• Give users access to the price history.
• Highlight the Omnibus price on the product page, next to the current selling price.

These requirements can be built into the pricing tool as advanced rules, so that every price reduction is calculated and communicated correctly automatically.

Why does the Omnibus Directive matter on Black Friday?

Because it is when the most price reductions are announced. A discount calculated on a price that is not the lowest of the last 30 days may be considered misleading advertising, and raising prices in the preceding weeks to inflate the discount is exposed by the 30-day rule. Well-configured dynamic pricing software records price history and helps announce price reductions that comply with the rules.

Frequently asked questions (FAQs) about the Omnibus Directive and dynamic pricing

Since when has the Omnibus Directive applied?

Since May 28, 2022. Directive (EU) 2019/2161 entered into force in January 2020, but Member States had until that date to apply its obligations.

Who does the Omnibus Directive affect?

Any business that sells goods, services or digital content online to consumers in the European Union, whether or not it is based in the EU.

Which reference price must be shown in a price reduction?

The lowest price applied in the 30 days before the reduction. In addition, according to the CJEU ruling of September 2024, the discount percentage must be calculated on that same price.

Does the Omnibus Directive ban dynamic pricing?

No. Prices can change continuously, but price reductions must be announced on the lowest price of the previous 30 days, and if a price is personalized through automated decision-making, the shopper must be informed.

Conclusion: transparency and dynamic pricing can go hand in hand

Complying with the Omnibus Directive does not limit dynamic pricing: it makes it more transparent and builds shopper trust. Reactev, the AI price optimization solution from the Minderest group, includes three mechanisms for applying dynamic pricing in line with the directive:

• Protection periods: when planning a promotion, you can set a protection period before and after the campaign (for example, 30 days) during which the product is excluded from the dynamic pricing algorithms, so that the price baseline is not altered ahead of the event.
• Lowest price of the last 30 days, calculated automatically: the platform stores the daily price history of each item, identifies the lowest price of the last 30 days and calculates the advertised discount percentage on it.
• Full traceability: every price adjustment and every promotion is recorded with the rule applied, the validity dates and the previous prices, giving the business an auditable history for any inspection.

This way, retailers and brands can launch large-scale campaigns with peace of mind that every discount is calculated on the reference price required by European regulations.

Find out how Reactev can help you apply a transparent dynamic pricing strategy.