Italy’s antitrust agency has issued a fine of 5.25 million euros, or $5.69 million, to online fashion retailer YOOX Net-A-Porter (YNAP) for misleading pricing and its returns policy. The regulator stated that the company advertised reductions on products that had a final sale price that was “substantially the same” as the pre-discount price and also blocked orders from customers who had previously returned more than a certain amount of purchases.
According to the regulator’s statement, the violations took place between 2019-2022. YNAP, which operates in the luxury fashion e-commerce space, did not immediately respond to an emailed request for comment.
This fine is a significant penalty for the company, and it remains to be seen how YNAP will respond. Misleading pricing and returns policies can harm customers and damage a company’s reputation, which is why it’s important for businesses to be transparent and honest with their pricing and return policies.
It’s worth noting that YNAP was controlled by Swiss luxury group Richemont until last year, when it sold a majority stake to luxury e-commerce specialist Farfetch and Dubai Mall developer Mohamed Alabbar. As a result, Farfetch and Alabbar are now responsible for the fine and any penalties resulting from the violations.
This fine is a reminder for online retailers to be aware of their legal obligations and also to be transparent and honest with their pricing and return policies. Consumers also have to be aware of their rights and should be vigilant when shopping online, looking out for any misleading or false information.