Tannico Fined $174,000 for Misleading Wine Discounts in Italy

Italy’s competition authority has fined Tannico, a leading online wine retailer, 150,000 euros (about $174,000) for unfair commercial practices related to misleading pricing. The decision was announced on Monday in Milan after an investigation into how Tannico advertised discounts on its website and mobile app.

According to the regulator, Tannico promoted certain wines as being “on offer,” but the discounted prices were equal to or even higher than the regular retail prices from the previous 30 days. This practice violates Italian rules that require transparency in discount advertising, ensuring that consumers are not misled about the value of a promotion.

Tannico was previously owned by a joint venture between Italy’s Campari Group and Moet Hennessy, part of French luxury conglomerate LVMH. In October, ownership changed hands when Castel-Vins, a subsidiary of French wine company Castel-Freres, acquired the business. The sale came after the period under review by the Italian authority.

The watchdog stated that Tannico’s misleading pricing practices have since stopped. The company updated its website and app in mid-July to comply with regulations. Since then, the authority confirmed that Tannico is no longer in breach of consumer protection rules.

Tannico’s press office did not respond to requests for comment regarding the fine or the changes made to its pricing policies. The Italian competition authority oversees both consumer rights and market competition, and it has increased scrutiny of e-commerce platforms as online shopping continues to grow in Italy.

The case highlights ongoing concerns about transparency in digital retail, especially as more consumers turn to online platforms for purchasing wine and other goods. The regulator’s action serves as a reminder to retailers about the importance of clear and honest communication with customers regarding pricing and promotions.