Is price monitoring legal? If you still have doubts… this is of interest to you!
Price monitoring is a legal and increasingly widespread practice internationally. However, there are a number of important considerations to take into account, depending on the context and laws of each country. Also, by specific regulations of certain industries.
As we will see below, the collection of information is absolutely legal. It is the use of available information that may have legal implications. Singular Brain is active in more than 35 countries, so we thought it would be interesting to list some of the more relevant aspects of this activity.
- Unfair competition and antitrust: in some countries, the constant monitoring of prices by several companies in a sector may raise suspicions of unfair competition and antitrust. Monitoring is understood as intentional activity to manipulate the market, set prices competitively or defame competitors. All of these could be subject to legal sanctions.
While it is perfectly legal to check the prices of a product on any website, what is illegal in some countries, including the European Union, is to force online retailers to sell at a specific price. Retail prices can be recommended, but never imposed according to certain regulations. - Consumer privacy and data protection: If the monitoring activity involves the collection of personal user data (names, credit card or sensitive information) it is important to comply with the relevant laws, such as the General Data Protection Regulation (GDPR) in the European Union.
- Misleading advertising: If price information is used in advertising or promotions, the information must be accurate and not misleading. Misleading advertising can lead to legal problems and penalties.
- Industry regulations: Depending on the industry in which you operate, there may be specific regulations related to price monitoring. For example, in both the pharmaceutical and financial industries, there are specific regulations that must be taken into account.
In summary, price monitoring in itself is NOT ILLEGAL but it is essential to consider local laws and regulations, as well as the terms and conditions of the websites you are monitoring.
(*) This article does not constitute specific legal advice. It simply outlines general concepts related to price monitoring.
