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Phoney Discounts Face New Law
5 Sep
Summary
- Government consults on banning misleading pricing tactics this autumn.
- Fake discounts already illegal but hard to prove under current law.
- New rules aim to make it easier to tackle deceptive pricing practices.
The government is set to introduce measures against "phoney bargains" this autumn, with a consultation exploring new regulations for retailers. The proposed changes aim to crack down on deceptive pricing tactics, such as fake discounts and misleading recommended retail prices (RRPs).
Currently, misleading pricing is prohibited under the Digital Markets, Competition and Consumers Act 2024, but enforcement by bodies like the Competition and Markets Authority (CMA) is challenging. Regulators must prove that a misleading price influenced a consumer's purchasing decision, a process that can be time-consuming and complex.
To simplify enforcement and provide clearer guidance, the government is considering adding specific false discount claims to a list of automatically banned practices. This would make it easier for authorities to take action against retailers who mislead shoppers about savings.
Experts emphasize that while retailers have pricing freedom, the presentation of discounts must not deceive consumers. The Chartered Trading Standards Institute provides guidance on good practice, stressing that reference prices must be genuine and discounts real, with evidence of significant sales at the original price.
