Penny Market was fined the maximum possible for mis-specified discounts.

The Czech retail chain Penny Market has been hit with the highest possible penalty under consumer protection law—five million Czech crowns—for repeatedly misrepresenting discounts on products sold in its stores. The decision was confirmed by Jan Řezáč, director of the regional office of the Czech Trade Inspection Authority (ČOI) responsible for the Plzeň and Karlovy Vary regions. According to the new amendment to the Consumer Protection Act, which defines how discounts must be calculated, retailers are required to base their discount percentages on the lowest price of a product over the past 30 days, rather than using daily prices. This measure aims to prevent businesses from artificially inflating prices before offering steep discounts, thereby misleading consumers into making purchases based on false perceptions of savings.

During inspections conducted by the ČOI in the Plzeň and Karlovy Vary regions, inspectors carried out 47 checks and found more than 500 cases where discounts were incorrectly calculated. In addition, 18 of these inspections also uncovered accounting errors totaling 640 crowns. These findings led to the imposition of the maximum fine allowed by law. The company's spokesperson, Markéta Smutná, stated that Penny Market acknowledges the ruling and will pay the fine as required.

This is not the first time Penny Market has faced penalties for similar violations. Earlier this year, the Jihomoravský and Zlín regional offices of the ČOI imposed a one-million-crown fine on the company for repeated breaches of the law prohibiting the sale of alcohol to individuals under the age of 18. The violation occurred between February and April of last year, during which seven instances were recorded where alcohol was sold to minors aged 15 and 16. At that time, the company expressed that it considered such sales unacceptable and committed to taking steps to strengthen age verification processes.

Despite these legal challenges, Penny Market has continued to grow financially. As part of the German REWE Group alongside another brand called Bill, the company reported a net profit increase of 27.1 percent in the Czech Republic last year, reaching approximately 1.17 billion crowns. Its total revenue amounted to about 61.9 billion crowns, representing an 11.6 percent rise compared to the previous year, according to financial disclosures published in the Official Gazette. Currently, the company operates 444 stores throughout the country.

In early June, the ČOI also issued fines exceeding eight million crowns to several retail chains for violating rules related to promotional activities and other aspects of consumer protection laws. Nearly half of this amount was paid by Kaufland, followed by Penny Market and Albert. These penalties highlight ongoing concerns regarding compliance with consumer rights and fair business practices within the retail sector.

The recent enforcement actions against Penny Market underscore the importance of strict adherence to regulations designed to protect consumers from deceptive marketing tactics. By ensuring that all promotions are transparent and accurately represented, regulatory bodies aim to maintain trust in the marketplace and safeguard public interests. As the situation develops, further scrutiny and potential additional measures could be taken to ensure that all companies comply fully with established standards.