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Price Indications, Misleading Prices and Pricing Quick Facts

Subject:  Price Indications, Misleading Prices and Pricing.

Relevant or Related Legislation:

Consumer Protection Act 1987.

Current Position:

The Department (BERR) is in the process of revising the Code of Practice for Traders on Price Indications.

Key Facts:

The Code of Practice for Traders on Price Indications provides advice on how to avoid giving a misleading price indication, which is an offence under the Consumer Protection Act 1987. It is not compulsory for traders to follow the advice in the Code but compliance with it may be used as evidence for the defence in any prosecution under the Act and non-compliance may be used as evidence in a prosecution.

The current revision of the Code aims to:

• bring it up to date (the Code was issued in 1988 and is long overdue for revision), including advice on avoiding giving a misleading price indication on the internet and through other innovative selling mechanisms;

• clarify the guidance where new relevant legislation has been introduced since the Code was issued and on specific queries that have arisen;

• address some sharp practices, particularly on sales promotions.

Frequently Asked Questions (FAQs)

Q1. I was charged a different price for an item at the till to the one that was shown on the shelf, what are my rights?
Q2. What status does the Code have?
Q3. A local trader is giving a misleading price indication, what should I do?
Q4. What is the 28 day rule?
Q5. I was given a misleading price at a restaurant, can I still complain?
Q6. I ordered products from a catalogue and was charged extra for postage and packing but the catalogue doesn't say that P&P is extra, can I complain?

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Q1. I was charged a different price for an item at the till to the one that was shown on the shelf, what are my rights?

The Consumer Protection Act 1987 makes it an offence for a trader to give a consumer misleading price indications. In the first instance speak to the trader about the differing prices, if you are not satisfied with the response, contact your local authority trading standards department who enforce the Act and who could bring a prosecution against the trader.

Q2. What status does the Code have?

The Code provides guidance to traders on how to avoid giving a misleading price indication. It is not compulsory for traders to follow the advice but compliance with it may be used as evidence for the defence in any prosecution under the Act and non-compliance may be used as evidence in a prosecution.

Q3. A local trader is giving a misleading price indication, what should I do?

Contact your local authority trading standards department, who would look in to the matter and take any necessary action.

Q4. What is the 28 day rule?

The 28 day rule allows a trader to claim a reduction on products he may wish to include in a sale or other promotion. It requires that the product must have been sold at a higher price for a period of 28 consecutive days within the previous 6 months in that outlet.

 Q5. I was given a misleading price at a restaurant, can I still complain?

Yes. Restaurants, and other traders who provide a service (e.g. banks, insurance companies etc), would be committing an offence if they give a misleading price indication. You should, keeping any written evidence (such as a receipt), contact Consumer Direct at: www.consumerdirect.gov.uk (Tel: 08454 04 05 06). Consumers in Northern Ireland should contact Consumer Line on 0845 600 6262.

Q6. I ordered products from a catalogue and was charged extra for postage and packing but the catalogue doesn't say that P&P is extra, can I complain?

Yes. Traders who offer items for sale via catalogues for example, are required to make clear additional charges for postage, packing or delivery, so that consumers are fully aware of them before they commit themselves to buy. If the trader cannot confirm the final price, he will be required to show in a prominent place that a charged will be made for P&P.

Enquiries:

The Department (BERR) does not deal with individual consumer enquiries or complaints. If you have an enquiry or are a business that needs advice please contact Consumer Direct at: www.consumerdirect.gov.uk (Tel: 08454 04 05 06). Consumers in Northern Ireland should contact Consumer Line on 0845 600 6262.