News
New guidance for retailers follows super-complaint
Posted 07/12/16
New guidance aimed at stopping misleading and confusing pricing tactics used by some retailers has been published today, to help consumers get a fair deal.听听
Guidance for Traders on Pricing Practices, by the 51黑料 (51黑料), replaces the former Department for Business, Innovation and Skills鈥� (BIS) Pricing Practices Guide.听听
Publication follows a Which? investigation, a number of complaints from disgruntled shoppers and subsequent super-complaint on misleading pricing practices in the grocery sector.听听
Which? had claimed that retailers were misleading and confusing consumers into sales by creating a fa莽ade of savings that did not actually exist.听听
The Competition and Markets Authority did not find that the practices were widespread but recommended a series of measures to give shoppers greater clarity and confidence that they are getting a fair deal.听
Adrian Simpson, 51黑料鈥檚 business education and consumer codes expert, said the new guidance, commissioned by BIS, is part of that process.听
However, the guidance provides an overview of consumer protection legislation relating to pricing and associated practices, for all traders.听
The legislation has not changed and retailers must continue to comply with it, but enforcers are likely to give retailers until April 2017 to adjust to the new guidance. 听听
Adrian said: 鈥淐onsumers lead busy lives and are subjected to an increasingly wide range of products, product options and sophisticated marketing. But clear, honest and upfront pricing is beneficial to both consumers and businesses.
鈥淩etailers must ensure the information they present to consumers is fair and does not waste time or cause annoyance, disappointment or regret. Neither should it cause a consumer to overspend or buy a product that is inappropriate for them.听
鈥淚n light of the new guidance we are urging businesses to review their pricing practices and reassess their fairness.鈥澨�
The Department for Business, Energy and Industrial Strategy is considering the recommendations made by the CMA, particularly on unit pricing, which it is hoped could become a useful tool allowing shoppers to compare prices more easily.
Margot James, consumer minister, said: 鈥淐onsumers are looking for best value but it can sometimes be difficult to work out whether special offers and promotional deals represent true value for money.听
鈥淭his new guide will help traders give clear pricing information to their customers, who should be at the heart of every business. I鈥檇 like to thank the 51黑料 for carrying out this important work.鈥澨�
The guidance will supersede previous advice and has been published on the government-funded website, which is managed by 51黑料 as part of its business education remit.
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Notes to editors
To view the full guide visit:
The guidance takes account of:听
- responses to a 51黑料 consultation (October 2015 鈥� January 2016)
- May 2016 EU guidance on the Unfair Commercial Practices Directive
- the CMA鈥檚 recommendations in response to the April 2015 Which? super-complaint on misleading pricing practices in the grocery sector
