Complete Guide to EU Omnibus Directive Compliance for Shopify Stores

The EU Omnibus Directive (Directive 2019/2161) represents one of the most significant changes to consumer protection law in the European Union in recent years. For Shopify store owners selling to EU customers, understanding and implementing this directive is not just good practice—it's a legal requirement.

What is the EU Omnibus Directive?

The Omnibus Directive is an EU regulation that came into effect on May 28, 2022. Its primary goal is to modernize consumer protection rules and close loopholes that allowed misleading pricing practices.

Key Requirements

The directive introduces several important requirements for online retailers:

1. 30-Day Price History: When announcing a price reduction, you must display the lowest price that was applied in the 30 days before the reduction.

2. Price Transparency: Consumers must be able to see whether a discount is genuine or if the "original price" was artificially inflated.

3. Review Authenticity: If you display customer reviews, you must indicate whether you verify that reviews come from actual customers.

4. Search Result Transparency: When search results are influenced by paid advertising, this must be clearly indicated.

Who Needs to Comply?

If you sell products online to consumers in the European Union, you need to comply with the Omnibus Directive. This applies to:

• EU-based businesses selling to EU consumers
• Non-EU businesses selling to EU consumers
• Businesses selling through marketplaces to EU consumers

Countries Covered

All 27 EU member states have implemented the Omnibus Directive:

How to Implement Omnibus Compliance on Shopify

Implementing Omnibus Directive compliance on your Shopify store doesn't have to be complicated. Here's a step-by-step guide:

Step 1: Track Price History

You need a system that automatically tracks price changes for all your products. This means:

• Recording every price change with a timestamp
• Maintaining at least 30 days of history
• Handling multiple currencies if applicable

Step 2: Display the Lowest Price

When you reduce a price, you must show:

• The current (reduced) price
• The previous price (optional, for showing the discount)
• The lowest price in the last 30 days

Current Price: €79.99 (was €129.99)
Lowest price in the last 30 days: €89.99

Step 3: Choose a Compliance Solution

You have several options for implementing compliance:

Manual Tracking: Keep spreadsheets of all price changes. This is time-consuming and error-prone for stores with many products.

Custom Development: Build your own solution using Shopify's APIs. This requires significant development resources.

Dedicated App: Use a specialized app like Omnibus Price Tracker that handles everything automatically.

Penalties for Non-Compliance

Failing to comply with the Omnibus Directive can result in significant penalties:

• Fines up to 4% of annual turnover in the relevant EU member state
• Injunctions requiring immediate compliance
• Damage to brand reputation
• Consumer complaints and negative reviews

Best Practices for Compliance

To ensure you stay compliant and maintain customer trust:

1. Automate Price Tracking: Manual tracking is error-prone. Use automated solutions.

2. Display Information Prominently: The 30-day lowest price should be easy to find on product pages.

3. Be Consistent: Apply the same rules across all products and promotions.

4. Document Everything: Keep records of price changes in case of audits.

5. Train Your Team: Ensure everyone involved in pricing understands the requirements.

Conclusion

The EU Omnibus Directive may seem complex, but with the right tools and understanding, compliance is straightforward. By implementing proper price tracking and display, you not only meet legal requirements but also build trust with your customers through transparent pricing.

Ready to become compliant? Install Omnibus Price Tracker on your Shopify store and automate your compliance in minutes.