European consumers may soon see a plethora of sales gimmicks, free gifts and special two-for-one deals unheard of in their own countries under a law approved by the European Parliament last week.
The Parliament approved preliminary plans to remove barriers to sales promotion in a broad liberalisation and harmonisation of the European Union's retail sector.
If the draft bill finally becomes law, a process that could still take many months, the 15-nation bloc could see a complete ban on free alcohol gifts to minors from 2005 or even earlier.
"Today's vote paves the way for sales promotions practices allowed in any member state to become legal across the EU and will affect any individual or company that sells anything across the 15 member states," said Conservative internal market spokesman Michael Harbour in a statement.
The new rules would replace numerous national regulations and make it easier for companies to do business across borders without falling foul of local restrictions.
According to the European Commission, they should help consumers reap the benefits of cross-border price transparency available thanks to e-commerce and the introduction of the euro.
Customer loyalty schemes such as airmiles and bonus points obtained through credit card purchases are also included in the draft bill, so that companies can organise pan-European marketing campaigns without suffering any legal headaches.
"The draft text was approved... but it can still make months. Parliament wants this to enter into force by January 1, 2005, but the Commission still wants it to start one year earlier," said a spokesman at the Strasbourg-based European Parliament.
"The main idea of this regulation is to prohibit member states from imposing any prohibitions on sales promotions," he said. "The only major exception is the sales below cost. There the member states will be allowed to keep national legislation."
Member states would be able to choose to ban discounts on fixed-price products and on sales below cost, or below the retailer's actual costs, on the basis that such discounts are not a form of sales promotion but anti-competitive commercial practice and therefore a matter for national governments.
Several EU nations ban sales below cost, including volume discounts, in legislation the Commission still wants to outlaw.
Sales promotions and discount schemes differ widely across the EU. In France, for example, retailers are banned from selling items at less than cost price while in Denmark there are strict rules on the use of coupons. Italy requires retailers to notify the Ministry of Finance of every sales promotion.
Marketing and branding associations have generally welcomed the proposals, although some consumer groups say they should be shelved until the EU proposes a broader set of fair-trade rules.