lyko CEO Confirms Price Increases Ahead of Black Friday, Citing Legal Loophole
Stockholm, Sweden – Lyko CEO Rickard Lyko has publicly admitted the company is raising prices on products in October to inflate perceived discounts during Black Friday, a practice increasingly common among Swedish retailers despite regulations intended to prevent misleading sales. The confirmation comes in response to criticism from fashion journalist Emely Dahl, who highlighted the tactic on TikTok.
The practice exploits a loophole in Sweden’s Price Information act, which since September 1, 2022, requires stores to display the lowest price for an item within the past 30 days when offering a reduction. According to the Swedish Consumer Agency, four out of ten e-commerce companies violated the rule last year.
A recent survey by price comparison site Prisjakt revealed a widespread trend of price increases in Swedish online stores ahead of Black Friday, with retailers raising prices more than 30 days before the sale to establish a higher baseline for discounts.
In a TikTok video responding to Dahl’s critique, Lyko stated, “That’s how the rules are. 30 days before we raise the prices to full price and then that is the price we compare with.As a consumer, if you want to be sure that you are buying at the best price, then the answer is probably not to shop in October and wait until November.”
Lyko further argued that changing the rules is necessary to address the issue, stating, “We want to do the right thing, but we also want to give customers a vrey attractive offer during Black week, becuase that’s what the consumer landscape looks like and it’s vital that everyone dose the same, otherwise there will be an unfair competitive situation between companies.”