Italian Competition Authority Fines Man Project for Misleading Outlet Pricing Practices

Key Takeaways

• Misleading Discounts: Man Project S.r.l. marketed Coveri Tailor garments as discounted items even though they were never sold in Maison Coveri boutiques or non-outlet stores at higher prices.
• Artificial Price Tags: The clothing arrived in Italy with pre-printed tags showing higher “crossed-out” prices, giving consumers the false impression of significant savings.
• Regulatory Action: The Italian Competition Authority fined the company €300,000 for violating the Consumer Code by misleading customers about product origin, value, and discount legitimacy.

Deep Dive

The Italian Competition Authority has fined Man Project €300,000 for what it determined to be an unfair commercial practice involving the sale of clothing items under the Coveri Tailor brand. According to the Authority, the company misled consumers by presenting garments as discounted items from earlier or higher-priced collections, when in fact the products had never been sold in traditional retail stores.

The investigation began after a report from the Livorno Customs Office, which signaled concerns about how the products were being marketed. The Authority found that the garments were manufactured specifically for outlet sales and arrived in Italy already bearing price tags that displayed multiple prices — with a higher price crossed out and a lower price highlighted.

This practice gave the impression that the items had previously been offered at full price in Coveri boutiques or other non-outlet stores and were now being sold at a discount. However, the Authority confirmed that the products had not been part of prior collections, nor had they been distributed in Maison Coveri boutiques or other retail channels outside outlets.

By presenting the items as discounted stock from established collections, Man Project’s pricing strategy led consumers to believe they were obtaining brand-name products at reduced prices. The Authority determined that this constituted a misleading commercial practice in violation of the Italian Consumer Code, as it created a false perception of value and discount.

The ruling demonstrates ongoing scrutiny of outlet pricing practices in Italy, particularly where brands or distributors suggest artificial discounts or inflate reference prices to influence consumer purchasing decisions.

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