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How Digital Labels Help Retailers Comply with Price Regulations

Price regulations require retailers to follow certain rules, and the SOLUM digital labels’ capability to update prices in real-time helped comply with these regulations.

When it comes to the world of retail, certain price regulations need to be met. Each country, city, or province usually has different laws and regulations about retail pricing. If retailers want to build an upstanding business while also staying competitive and earning the audience’s trust, complying with these price regulations should be a priority. This is why retailers need to look at their product pricing as well as the label industry to make sure they comply. Fortunately, retail technologies such as a digital label solution make it easier for retailers to adhere to any law or ordinance.

Examples of Price Regulation in Retail

Price regulation in retail can take various forms. They are often implemented by local and national governments to protect consumers, ensure fair consumption, and stabilize markets and communities.


Here are some examples of price regulation:


  1. Minimum Pricing Laws: These laws set a minimum price below which certain goods cannot be sold. This is often used for products like alcohol or tobacco to discourage excessive consumption or prevent predatory pricing practices among other retailers.
  2. Unit Pricing: Unit pricing regulations usually vary by country and state. However, this generally applies to goods being sold on a unit basis, for example, selling fruits by the pound. This requires stores to display and implement uniform pricing for all applicable products.
  3. Price Controls: Governments may impose price controls to limit how much retailers can charge for certain goods or services. This can be temporary during emergencies or more permanent for essential items like utilities or basic food items.
  4. Price Ceilings and Price Gouging: Price ceilings set a maximum price that can be charged for a product or service. These are often used to prevent price gouging during emergencies or to make essential goods more affordable. Price gouging occurs when retailers try to take advantage of growing demand. Price ceilings limit the chances of these situations.
  5. Sale Advertisements: Some price regulations also refer to the way retailers advertise their products on sale. In some places, like Alaska, retailers are not allowed to advertise their products for sale or discount unless the product has a significant reduction in its original price. This particular price regulation in Alaska also covers the disclosing of sales periods and misleading general headlines for a “sale” in stores.
  6. Price Floors: Conversely, price floors set a minimum price for certain goods or services. This is often used in agriculture to ensure farmers receive a fair price for their products.
  7. Fair Trade Regulations: Fair trade regulations may establish minimum prices that producers receive for their goods. This helps ensure that they are not exploited by middlemen or large corporations.
  8. Anti-Price Discrimination Laws: These laws prohibit retailers from charging different prices to different customers for the same product without valid reasons, such as quantity discounts or loyalty programs.
  9. Loss Leader Laws: Some jurisdictions regulate the practice of selling goods below cost (known as loss leaders) to attract customers. This is because it can be seen as anti-competitive behavior that harms smaller or independent businesses.
  10. Resale Price Maintenance: In some cases, manufacturers may attempt to control the resale price of their products by imposing minimum prices that retailers must charge. However, these practices are often subject to antitrust scrutiny.
  11. Dynamic Pricing Regulations: Some jurisdictions regulate the use of dynamic pricing algorithms that adjust prices based on factors like demand, supply, or consumer behavior to prevent price discrimination or unfair pricing practices.


These are just a few examples of what and how price regulations can look like. Various countries and regions can have their local laws, economic conditions, and cultural factors. Retailers need to be aware of the regulations in their specific markets and locations, so that they may be able to take all the necessary steps for compliance.

Ways that a Digital Label Can Help Retailers Comply with Price Regulations

Retailers need to turn to the label industry and find a solution that would help display their prices and advertise their products in compliance with price regulations. A digital label can be a modern solution to this aspect of retailing. A digital label solution, or electronic shelf labels (ESL), offers several features that can help retailers comply with price regulations and laws more effectively.


The Newton ESL by SOLUM, in particular, is an ESL solution for various retail environments. One of its main advantages is the pricing display and updates. Retailers can use every digital label to show clear product prices and advertise sales or discounts appropriately. Not only that but as a whole solution, Newton ESL automates and streamlines retail operations to reduce time and effort from retail employees. With features and capabilities developed for price updates, retailers can have functional labels.


Here are a few ways that digital labels like the Newton ESL can help retailers with price regulation compliance.


#1 Digital label helps with real-time price updates

ESLs can be wirelessly connected to a central system or label management system, allowing retailers to update prices in real-time. This ensures that prices are accurate and up-to-date for every product offering. This minimizes the risk of non-compliance with regulations related to pricing accuracy.


#2 Digital labels have centralized control for the display

ESL systems typically include centralized management software that allows retailers to monitor and control pricing information across the whole store from a single interface. This centralized control makes it easier to enforce price regulations consistently and efficiently. Retailers will also be able to modify the content and display any prices, product information, or sale information.


#3 Digital labels can show audit trails and reporting

ESL systems may include features for tracking price changes and generating reports. Retailers can use this data to demonstrate compliance with pricing regulations, providing a clear audit trail that shows when prices were updated and ensuring transparency in pricing practices.


#4 Digital labels make way for dynamic pricing capabilities

Some ESL systems offer dynamic pricing capabilities, allowing retailers to adjust prices based on factors like demand, inventory levels, or competitor pricing. While dynamic pricing must still comply with regulations, ESLs can facilitate the implementation of dynamic pricing strategies while ensuring that prices remain within regulatory limits.


#5 Digital labels help with price verification and accuracy

ESLs can improve price verification and accuracy by displaying prices digitally. This reduces the likelihood of errors associated with manual price labeling or pricing discrepancies between the shelf and the point of sale system. This helps retailers comply with regulations related to pricing accuracy, prevent any confusion or altercation from consumers, and reduce the likelihood of potential fines or penalties for mispricing.

Moreover, this kind of accuracy from digital labels can also be applied to online inventory. Retailers can use digital labels to synchronize physical inventory and e-commerce prices. This would help retailers present the same prices across their selling channels more accurately. Consumers, in return, would have more trust and engagement with an omnichannel approach like this.


#6 Digital label helps with appropriate sales and marketing visuals

Digital labels can show more than just the price and the product name. Retailers can use the central label management system to add comprehensive product information as well as sales and discount information. This way, shoppers can see any crucial product information they need before buying. Retailers will also be able to show the significant price reduction that qualifies for a sale advertisement. Retailers can easily market their products appropriately with ESL to attract more consumers and build trust.


Overall, a digital label solution provides retailers with the tools and capabilities needed to manage pricing effectively while ensuring compliance with price regulations. Not only that, but it will also improve the audience’s shopping experience for the better.

Reasons to Comply with Price Regulation

Compliance with price regulations is essential for retailers for several reasons. Of course, this goes beyond any legal liabilities and might affect consumers and other vendors as well. It’s not only a legal requirement but also a strategic move for retailers to protect consumers, safeguard their reputation, and more.


Here are the crucial reasons to comply with price regulation:


  • Legal obligations and responsibilities
  • Consumer protection
  • Market stability
  • Business reputation
  • Reduction of financial losses
  • Competitive advantage


It’s time to take price regulations and price displays seriously. If you need a modern solution to help your business comply with rules and enhance your retail shelves, a digital label solution is the answer. Talk to SOLUM experts to learn more about Newton ESL!

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