The Dutch consumer authority ACM has fined five online stores a total of €621,000 for offering fake discounts and misleading consumers into thinking they were getting a better deal.

The webshops offered multiple products with discounts on misleading ‘was-prices’ but in reality, the discount was lower or none was offered at all, the ACM said.

“Price is one of the most important characteristics on which consumers base their purchase decisions,” said ACM board member Cateautje Hijmans van den Bergh.

“Fake discounts make consumers think they are getting an interesting deal, even though this is not the case. Consumers must be protected against this practice and the fines that we have imposed today are an important signal that this has to stop.”

Dutch online store Day Trayders was fined €163,000 and furniture retailer Leen Bakker €130,000 for using fake discounts, and neither company has yet admitted the practice, the ACM said.

Three others, who acknowledged they had violated consumer law were given lower fines.

Fashion retailer G-star was fined €110,000,  a fine of €112,500 was imposed on Danish furniture retailer JYSK and Tommy Hilfiger’s online shop in the Netherlands was fined €105,500.

By law, companies that use discounts must use the the lowest ‘was-price’ in the 30 days before the discount. For example, one of the companies that were fined offered a product that “was” €699 and “now” €629, but in the 30 days before the sale, the actual price was €539.

More companies face investigation in the coming period, the ACM said.