In the latest March edition of the journal COMPETITION LAW & POLICY DEBATE, True Pricing is mentionoed as a necesary condition for adequate competition law.

The author Maurits Dolmans, Partner, Cleary Gottlieb Steen & Hamilton LLP, argues that the global environmental crisis asks for a renewal of existing competition law.

“Competition policy is inadequate in its pursuit of consumer welfare if market failures like price externalities are ignored. Antitrust authorities can protect consumer welfare adequately only if the “true price” is considered. “

The title of the article is Sustainable Competition Policy. The journal is published by Claeys Casteels Publishers.

The journal is not accessible online, but can be accessed upon request.

 

 

Imagine a world where every product is priced for its true price, a price which considers social and environmental costs too, such as underpayment of workers and air pollution. Last month, this world became one step closer as True Price took an important step in its mission to enable everyone to know the true price of a product. Together with our friends at Wageningen University and Bionext we kicked-off a program on True and Fair Pricing to make true pricing methodology available to everyone as an open standard.

So what does this actually mean? This means that soon for example bakeries, banks, farmers can use these open source standards to have better insights on the true price of their products, reduce their environmental impact and improve the conditions of their employees. And it can help you choose environmentally and socially sound products by seeing their true price.

Read more >

 

Great news! True Pricing is considered an optional mandatory instrument to provide consumers sustainability information, in an evaluation report provided to the Dutch Government.

The researchers state: “It is also conceivable that companies should provide other types of information, for example by indicating the difference between the price paid by the customer and the actual price if all external costs were taken into account (‘true price’) (…)” – p. 45.

The recommendation was done by researchers from Erasmus University Rotterdam. It was part of an evaluation report focusing on the Dutch International Corporate Social Responsibility (ICSR) policy. This policy focuses on making global value chains more sustainable through voluntary self-governance by businesses.

The report was titled “Options for Mandatory ICSR Instruments” and send to the House of representatives on April 4 2020. The document can be found under this link (in Dutch).