Pricing inspections
In this guide:
- Providing price information
- Pricing legislation
- Pricing inspections
- Price comparison rules: previous prices
- Price comparison rules
- Price comparison rules: competitors
- Price comparison rules: recommended retail prices, sales, offers
- Price comparison rules: perishables, distance sales, further reductions
- Price comparison rules: conditional and introductory offers
- Avoid misleading pricing information
Pricing legislation
Legislation that protects consumers from unfair commercial practices, including misleading pricing information such as the unfair trading regulations.
Businesses must ensure that where goods are offered for sale to consumers, the selling price is clearly indicated.
The selling price must be inclusive of VAT and other taxes. Where appropriate the unit price must be given to consumers in writing. This information must be:
- clearly legible
- unambiguous
- easily identifiable
- in sterling
- placed on the goods themselves or in close proximity to the goods
To understand their legal requirements, retailers can use the resources provided by the Competition and Markets Authority (CMA) in collaboration with Trading Standards.
Download the poster to view the requirements of consumer legislation (PDF, 738K).
Unit pricing
Unit pricing is designed to allow customers to compare products by reference to weight or volume. Unit pricing is not applicable to small shops with a retail area of less than 280 m2. This is generally categorised as price per kilogram, litre, meter, square meter or cubic meter.
A unit price must be given when goods are either:
- sold loose from bulk (example - fruit, vegetables, meats, fish)
- required by weights and measures legislation to be marked with an indication of quantity or sold in a prescribed quantity
VAT and other charges
- all price indications visible to consumers must include VAT and any other charges or taxes
- if the rate or application of VAT changes, general notices in-store may be used for up to 28 days after the change takes effect
- posting, packaging or delivery charges may be shown separately if they are easily identifiable and unambiguous to the consumer
- do not charge consumers a fee for using a credit or debit card
Promotions
Promotional offers should be unit priced to reflect the single standard item.
You should not use statements such as 20% off ‘all’ or ‘everything’ unless the statement applies to all the products described, to everything in the store or in that category.
If comparing the price of goods to a competitor’s price, the price comparison must not be false or mislead consumers.
You should not advertise products at a specific price if you have reason to believe reasonable quantities will not be available.
Pricing legislation
There are several pieces of legislation that protect people from the activities of unscrupulous or dishonest traders.
Digital Markets, Competition and Consumers Act 2024
If you promote or sell goods, services or digital content to consumers, you must comply with the Digital Markets, Competition and Consumers Act 2024 (DMCCA).
This act bans traders from using any unfair commercial practices. A commercial practice is unfair if it causes a consumer to take a transactional decision they would not otherwise have taken, such as buying goods or services or visiting a shop or website. A commercial practice will also be unfair if it omits information from an invitation to purchase (for example, you advertise a product price but do not include VAT), or if it is listed in Schedule 20 of the Act (commercial practices which are unfair in all circumstances).
Commercial practices are any actions you, as a trader, take - or omissions you make - that are directly connected to the promotion or supply of goods, services or digital content to members of the public.
Commercial practices include providing information about prices. Examples of unfair commercial practices in relation to pricing include:
- misleading consumers about an item's price, or the way in which the price is worked out
- misleading consumers by claiming a price advantage that doesn't exist - for example, making a false claim that your products are cheaper than a competitor's
- leaving out details of extra hidden costs, such as taxes, delivery or postal charges
- prices that are added as consumers proceed with a transaction - see drip pricing
Other legislation
You'll also need to comply with other legislation that covers pricing practices, including the:
- Consumer Rights Act 2015
- Consumer Credit Act 1974
- Consumer Rights (Payment Surcharges) Regulations as amended by the Payment Services Regulations 2017
- Price Marking Order (Northern Ireland) 2004
There are specific regulations covering pricing information provided by certain types of businesses.
There are also rules governing misleading advertisements.
Business to business
If your customers are other businesses, you'll need to comply with the Business Protection from Misleading Marketing Regulations 2008. These regulations cover:
- misleading pricing information
- when a business can use advertising that identifies a competitor or their products and services
Developed withAlso on this siteContent category
Source URL
/content/pricing-legislation
Links
Pricing inspections
What to expect when a trading standards officer visits your premises.
A pricing inspection is relatively straightforward.
Trading standards officers will check the prices of a selection of products in your store, this number will depend on the size of the business. If the visit is in connection with a complaint, the inspection will reflect the nature of the complaint.
A Trading standards officer will ensure that the price is accurate and matches price stickers, the price edge label or promotional material. Special attention will also be given to promotional items, such as, “Buy one, get one free”.
Trading Standards officers may require the assistance of a member of staff, who will normally scan the selected products through a checkout and provide the officers with a receipt.
Trading Standards officers carry out inspections discreetly and try to arrange visits at times which are less busy, however, this is not always possible.
What to expect from a Trading Standards visit
Trading Standards’ core function is the protection and promotion of a strong and robust fair trading environment. Trading Standards will sometimes visit your business premise to carry out an inspection and ensure compliance with all relevant rules and regulations.
This visit may be in response to intelligence, such as a consumer or business complaint. Alternatively, this visit may be a routine inspection, carried out as part of a pro-active enforcement project or programme of work.
A visit from Trading Standards does not indicate a presumption of non-compliance but should be viewed as an opportunity to confirm or improve good trading practices.
Most common examples of non-compliance, especially those found during a price inspection, can be remedied with small adjustments. However, on the rare occasion that evidence of more significant non-compliance or rogue trading is discovered, this will be considered by senior trading standards officers, who may recommend formal enforcement outcomes in line with the Trading Standards Service enforcement policy. All Trading Standards visits, regardless of the outcome, will be followed up with a letter.
Identifying Trading Standards Officers
Trading standards officers carry photographic identification, which displays their name and related departmental details. Unlike other parts of the UK, Northern Ireland Trading Standards Service is the only trading standards organisation operating in Northern Ireland.
If you have any concerns, you should contact The Trading Standards Service on Tel: 0300 123 6262.
Developed withAlso on this siteContent category
Source URL
/content/pricing-inspections
Links
Price comparison rules: previous prices
Complying with the law when you compare your new selling prices to prices you charged previously and prevent giving out misleading information.
If you make price comparisons with your own previous prices, you should take care to:
- explain the price comparison clearly and unambiguously
- make sure the price you use for the comparison is your most recent price that was available for 28 days in a row or more - if you use an earlier price you'll need to make that clear
- include details of both the previous and the new price
- make sure the basis of the price comparison is reasonable in terms of time - ideally the period during when the new price is available shouldn't be longer than the period during which the old higher price was on offer
- avoid comparisons with prices that you offered more than six months ago
It's important to make sure that the previous price you refer to is a genuine retail price. A price is genuine if you would reasonably expect to sell a significant volume of goods at that price, or if you would have offered the goods for sale at that price for a reasonable period - such as 28 days.
Also on this siteContent category
Source URL
/content/price-comparison-rules-previous-prices
Links
Price comparison rules
How to stay within the law when you make price comparisons for your products or services and avoid giving misleading pricing information.
Consumer protection regulations ban traders from giving false or misleading pricing information that could make a consumer buy something they might not otherwise have bought. The regulations ban:
- false or misleading information about the way a price is worked out
- misleading omissions from pricing details - such as extra delivery charges on top of the advertised price
If you're going to make any form of price comparison for your products or services, you should be able to:
- justify the comparison
- show that any claim you make is accurate and valid - and in particular that any price advantage you claim for your products is real
When you make any price comparisons, it's important to:
- compare like with like
- make sure the basis of the price comparison is reasonable in terms of time - it's advisable to make a new lower price available for a shorter period than a previous higher price you offered
- explain the price comparison clearly and unambiguously so that consumers can easily identify the previous higher price and the new lower price
- make it clear what sort of price the higher price is - for example any comparison that uses the words 'normal price' should also say what the normal price is
- write out descriptions of price comparisons in full - except for the abbreviations 'RRP' - recommended retail price - and 'man rec price' which you can use
Also on this siteContent category
Source URL
/content/price-comparison-rules
Links
Price comparison rules: competitors
Complying with the law when you compare your selling prices to the prices that other traders charge and avoiding giving misleading pricing information.
If you make price comparisons with another trader's prices, you should take care that these don't mislead people by:
- giving false or misleading information
- leaving out important relevant details
- presenting the information in a deceptive way
To comply with consumer protection regulations, you should make sure that:
- the other trader's price that you quote is accurate and up to date
- you show the other trader's name clearly and prominently
- you make it clear when the other trader's price applied and in what circumstances
- the other trader's price is for the same product as yours - if it's for a similar product, you'll need to explain the differences
- you compare prices for goods that are supplied in the same quantity or the same state - or you explain any differences clearly
- you compare prices for goods that are sold in the same area, unless it makes no difference because there's a national pricing policy in place
- you don't make price promise claims about own-brand goods that aren't available from other retailers - for example, by offering to refund the difference in price to a customer if they can buy a certain product more cheaply somewhere else when that product is only available from you
- you can support any 'best price' claims with evidence showing that you're offering a lower price than your competitors
Also on this siteContent category
Source URL
/content/price-comparison-rules-competitors
Links
Price comparison rules: recommended retail prices, sales, offers
Comparing your selling prices with another price such as a recommended retail price or a pre-printed price, sale and event prices or free offers.
When you're comparing your products' prices with other prices there are some situations where you'll need to take special care not to mislead people.
Comparison with a recommended retail price or similar
If you make a price comparison, you shouldn't use a recommended retail price (RRP) or a similar price if:
- it isn't genuine
- it's very different to the price you normally sell the product for
- you're the only business that supplies the goods in question
Pre-printed prices
If the manufacturer of a product has included a printed price reduction like '10p off RRP' on the packaging, you should pass this on to your customers.
If the item carries a pre-printed price that's higher than the price you'll charge, you're making a price comparison. You should treat the pre-printed price in the same way as an RRP.
Sales and special events
The rules covering pricing information also apply to sales and special events. Key requirements include:
- if you buy goods especially for a sale, and you make this clear to consumers, you shouldn't quote a higher price when you say that the goods are special purchases
- if you display a general notice advertising a reduction from the marked price, the notice should make it clear if the marked price on individual items isn't your own previous price
- you shouldn't use general notices advertising a reduction like 'up to 50% off' unless the biggest reduction you quote applies to a significant proportion of the range of products on offer that are included in the promotion
- if you extend your sale period you should make the new circumstances clear
Free offers and similar promotions
The law bans traders from describing a product as 'free' if a customer has to pay anything for it apart from any unavoidable cost of responding to the offer and the cost of collection or delivery.
You should make it clear exactly what people must do to get a free or reduced-price offer - for example, collecting tokens or paying for delivery.
Also on this siteContent category
Source URL
/content/price-comparison-rules-recommended-retail-prices-sales-offers
Links
Price comparison rules: perishables, distance sales, further reductions
Making price comparisons in special cases such as perishable goods and distance contracts, and making a series of price reductions over time.
There are guidelines to help you when you make price comparisons in special cases such as:
- on food, drink and perishable goods
- in distance selling contracts
- when you're making a series of reductions
Food, drink and perishable goods
Generally, the price you should use for any price comparison is your most recent price available for 28 days or more in a row. However, if you reduce an item of food or drink for quick sale because it's close to exceeding its shelf life, you can use a previous price that applied for a shorter period if this is reasonable in the circumstances. The price you use for the comparison should be the last price that the product was on sale for in the same outlet.
This also applies to perishable non-food items if they have a short shelf life - for example, less than six weeks.
Distance contracts
If you only sell products through distance contracts so there's no face-to-face contact with your customers, you shouldn't make a price comparison with a previous price that wasn't your own last price.
You might sell the same products for different prices from different types of outlets - for example online and in your shop. If you compare one price with another that's available in a different outlet, you'll need to explain this clearly.
Making a series of reductions
If you advertise a price reduction and then offer further discounts, the first reduction may have applied for a shorter period than would generally be considered reasonable when compared to the original full price. Where this happens, you should make sure people can understand the reductions by showing the:
- highest price
- reduced price or prices
- current selling price
Also on this siteContent category
Source URL
/content/price-comparison-rules-perishables-distance-sales-further-reductions
Links
Price comparison rules: conditional and introductory offers
Making price comparisons during promotions such as introductory offers, offers that are conditional on factors like quantity and special customer groups.
There are special guidelines to follow when you make price comparisons during introductory offers and other promotional activities.
Introductory offers
When you provide pricing information, you should take care not to:
- call a promotion an 'introductory offer' if you don't intend to offer the same product for sale at a higher price later
- let an offer go on for such a long time that it's misleading to call it 'introductory' - it's best to say when the offer will end and stick to it
- indicate an after-promotion price for an item if you don't intend to offer identical products at that price for a reasonable time - you should clearly explain what you mean if you quote a future price
Comparisons with prices related to different circumstances
The law says that all price comparisons should be fair and reasonable. If you're not comparing like with like, you should give a clear and unambiguous explanation of the differences.
Carefully consider making price comparisons for:
- different quantities - for example, 30 pence each or four for a pound
- goods in a different condition - such as a reduction for seconds
- goods in a different state - such as a lower price for something that needs home assembly
- different availability - for example, a reduction in the price of goods that are normally only available to order
- special groups of customers - such as discounts for pensioners
Also on this siteContent category
Source URL
/content/price-comparison-rules-conditional-and-introductory-offers
Links
Avoid misleading pricing information
Matters that businesses need to be aware of so that the price information they give to consumers isn't misleading such as including VAT.
Consumer protection legislation bans traders from giving misleading information about prices. This could include quoting a price that's lower than the one that actually applies to persuade a customer to buy something they might not otherwise have bought.
You must not show one price in an advert, on a website, in a window display, on shelf marking or on the item itself and then charge a higher price at the point of sale or checkout.
There are also specific regulations that apply to particular types of sale or ways of selling - including:
- distance selling contracts
- package travel
- estate agency
Your local trading standards service can advise you on the specific regulations that apply to your type of business.
VAT
All the pricing information that you give to consumers must include VAT at the appropriate rate. You must display the total price prominently so people can see it clearly.
If all your trade is with business customers, you can legally display VAT-exclusive prices, so you can show the net price and the VAT separately.
Price indications that later become misleading
You should monitor all your pricing information to make sure it hasn't become misleading. For example, a price you quoted previously may no longer be accurate because you haven't updated it following a change in the VAT rate.
Also on this siteContent category
Source URL
/content/avoid-misleading-pricing-information
Links
Pricing legislation
In this guide:
- Providing price information
- Pricing legislation
- Pricing inspections
- Price comparison rules: previous prices
- Price comparison rules
- Price comparison rules: competitors
- Price comparison rules: recommended retail prices, sales, offers
- Price comparison rules: perishables, distance sales, further reductions
- Price comparison rules: conditional and introductory offers
- Avoid misleading pricing information
Pricing legislation
Legislation that protects consumers from unfair commercial practices, including misleading pricing information such as the unfair trading regulations.
Businesses must ensure that where goods are offered for sale to consumers, the selling price is clearly indicated.
The selling price must be inclusive of VAT and other taxes. Where appropriate the unit price must be given to consumers in writing. This information must be:
- clearly legible
- unambiguous
- easily identifiable
- in sterling
- placed on the goods themselves or in close proximity to the goods
To understand their legal requirements, retailers can use the resources provided by the Competition and Markets Authority (CMA) in collaboration with Trading Standards.
Download the poster to view the requirements of consumer legislation (PDF, 738K).
Unit pricing
Unit pricing is designed to allow customers to compare products by reference to weight or volume. Unit pricing is not applicable to small shops with a retail area of less than 280 m2. This is generally categorised as price per kilogram, litre, meter, square meter or cubic meter.
A unit price must be given when goods are either:
- sold loose from bulk (example - fruit, vegetables, meats, fish)
- required by weights and measures legislation to be marked with an indication of quantity or sold in a prescribed quantity
VAT and other charges
- all price indications visible to consumers must include VAT and any other charges or taxes
- if the rate or application of VAT changes, general notices in-store may be used for up to 28 days after the change takes effect
- posting, packaging or delivery charges may be shown separately if they are easily identifiable and unambiguous to the consumer
- do not charge consumers a fee for using a credit or debit card
Promotions
Promotional offers should be unit priced to reflect the single standard item.
You should not use statements such as 20% off ‘all’ or ‘everything’ unless the statement applies to all the products described, to everything in the store or in that category.
If comparing the price of goods to a competitor’s price, the price comparison must not be false or mislead consumers.
You should not advertise products at a specific price if you have reason to believe reasonable quantities will not be available.
Pricing legislation
There are several pieces of legislation that protect people from the activities of unscrupulous or dishonest traders.
Digital Markets, Competition and Consumers Act 2024
If you promote or sell goods, services or digital content to consumers, you must comply with the Digital Markets, Competition and Consumers Act 2024 (DMCCA).
This act bans traders from using any unfair commercial practices. A commercial practice is unfair if it causes a consumer to take a transactional decision they would not otherwise have taken, such as buying goods or services or visiting a shop or website. A commercial practice will also be unfair if it omits information from an invitation to purchase (for example, you advertise a product price but do not include VAT), or if it is listed in Schedule 20 of the Act (commercial practices which are unfair in all circumstances).
Commercial practices are any actions you, as a trader, take - or omissions you make - that are directly connected to the promotion or supply of goods, services or digital content to members of the public.
Commercial practices include providing information about prices. Examples of unfair commercial practices in relation to pricing include:
- misleading consumers about an item's price, or the way in which the price is worked out
- misleading consumers by claiming a price advantage that doesn't exist - for example, making a false claim that your products are cheaper than a competitor's
- leaving out details of extra hidden costs, such as taxes, delivery or postal charges
- prices that are added as consumers proceed with a transaction - see drip pricing
Other legislation
You'll also need to comply with other legislation that covers pricing practices, including the:
- Consumer Rights Act 2015
- Consumer Credit Act 1974
- Consumer Rights (Payment Surcharges) Regulations as amended by the Payment Services Regulations 2017
- Price Marking Order (Northern Ireland) 2004
There are specific regulations covering pricing information provided by certain types of businesses.
There are also rules governing misleading advertisements.
Business to business
If your customers are other businesses, you'll need to comply with the Business Protection from Misleading Marketing Regulations 2008. These regulations cover:
- misleading pricing information
- when a business can use advertising that identifies a competitor or their products and services
Developed withAlso on this siteContent category
Source URL
/content/pricing-legislation
Links
Pricing inspections
What to expect when a trading standards officer visits your premises.
A pricing inspection is relatively straightforward.
Trading standards officers will check the prices of a selection of products in your store, this number will depend on the size of the business. If the visit is in connection with a complaint, the inspection will reflect the nature of the complaint.
A Trading standards officer will ensure that the price is accurate and matches price stickers, the price edge label or promotional material. Special attention will also be given to promotional items, such as, “Buy one, get one free”.
Trading Standards officers may require the assistance of a member of staff, who will normally scan the selected products through a checkout and provide the officers with a receipt.
Trading Standards officers carry out inspections discreetly and try to arrange visits at times which are less busy, however, this is not always possible.
What to expect from a Trading Standards visit
Trading Standards’ core function is the protection and promotion of a strong and robust fair trading environment. Trading Standards will sometimes visit your business premise to carry out an inspection and ensure compliance with all relevant rules and regulations.
This visit may be in response to intelligence, such as a consumer or business complaint. Alternatively, this visit may be a routine inspection, carried out as part of a pro-active enforcement project or programme of work.
A visit from Trading Standards does not indicate a presumption of non-compliance but should be viewed as an opportunity to confirm or improve good trading practices.
Most common examples of non-compliance, especially those found during a price inspection, can be remedied with small adjustments. However, on the rare occasion that evidence of more significant non-compliance or rogue trading is discovered, this will be considered by senior trading standards officers, who may recommend formal enforcement outcomes in line with the Trading Standards Service enforcement policy. All Trading Standards visits, regardless of the outcome, will be followed up with a letter.
Identifying Trading Standards Officers
Trading standards officers carry photographic identification, which displays their name and related departmental details. Unlike other parts of the UK, Northern Ireland Trading Standards Service is the only trading standards organisation operating in Northern Ireland.
If you have any concerns, you should contact The Trading Standards Service on Tel: 0300 123 6262.
Developed withAlso on this siteContent category
Source URL
/content/pricing-inspections
Links
Price comparison rules: previous prices
Complying with the law when you compare your new selling prices to prices you charged previously and prevent giving out misleading information.
If you make price comparisons with your own previous prices, you should take care to:
- explain the price comparison clearly and unambiguously
- make sure the price you use for the comparison is your most recent price that was available for 28 days in a row or more - if you use an earlier price you'll need to make that clear
- include details of both the previous and the new price
- make sure the basis of the price comparison is reasonable in terms of time - ideally the period during when the new price is available shouldn't be longer than the period during which the old higher price was on offer
- avoid comparisons with prices that you offered more than six months ago
It's important to make sure that the previous price you refer to is a genuine retail price. A price is genuine if you would reasonably expect to sell a significant volume of goods at that price, or if you would have offered the goods for sale at that price for a reasonable period - such as 28 days.
Also on this siteContent category
Source URL
/content/price-comparison-rules-previous-prices
Links
Price comparison rules
How to stay within the law when you make price comparisons for your products or services and avoid giving misleading pricing information.
Consumer protection regulations ban traders from giving false or misleading pricing information that could make a consumer buy something they might not otherwise have bought. The regulations ban:
- false or misleading information about the way a price is worked out
- misleading omissions from pricing details - such as extra delivery charges on top of the advertised price
If you're going to make any form of price comparison for your products or services, you should be able to:
- justify the comparison
- show that any claim you make is accurate and valid - and in particular that any price advantage you claim for your products is real
When you make any price comparisons, it's important to:
- compare like with like
- make sure the basis of the price comparison is reasonable in terms of time - it's advisable to make a new lower price available for a shorter period than a previous higher price you offered
- explain the price comparison clearly and unambiguously so that consumers can easily identify the previous higher price and the new lower price
- make it clear what sort of price the higher price is - for example any comparison that uses the words 'normal price' should also say what the normal price is
- write out descriptions of price comparisons in full - except for the abbreviations 'RRP' - recommended retail price - and 'man rec price' which you can use
Also on this siteContent category
Source URL
/content/price-comparison-rules
Links
Price comparison rules: competitors
Complying with the law when you compare your selling prices to the prices that other traders charge and avoiding giving misleading pricing information.
If you make price comparisons with another trader's prices, you should take care that these don't mislead people by:
- giving false or misleading information
- leaving out important relevant details
- presenting the information in a deceptive way
To comply with consumer protection regulations, you should make sure that:
- the other trader's price that you quote is accurate and up to date
- you show the other trader's name clearly and prominently
- you make it clear when the other trader's price applied and in what circumstances
- the other trader's price is for the same product as yours - if it's for a similar product, you'll need to explain the differences
- you compare prices for goods that are supplied in the same quantity or the same state - or you explain any differences clearly
- you compare prices for goods that are sold in the same area, unless it makes no difference because there's a national pricing policy in place
- you don't make price promise claims about own-brand goods that aren't available from other retailers - for example, by offering to refund the difference in price to a customer if they can buy a certain product more cheaply somewhere else when that product is only available from you
- you can support any 'best price' claims with evidence showing that you're offering a lower price than your competitors
Also on this siteContent category
Source URL
/content/price-comparison-rules-competitors
Links
Price comparison rules: recommended retail prices, sales, offers
Comparing your selling prices with another price such as a recommended retail price or a pre-printed price, sale and event prices or free offers.
When you're comparing your products' prices with other prices there are some situations where you'll need to take special care not to mislead people.
Comparison with a recommended retail price or similar
If you make a price comparison, you shouldn't use a recommended retail price (RRP) or a similar price if:
- it isn't genuine
- it's very different to the price you normally sell the product for
- you're the only business that supplies the goods in question
Pre-printed prices
If the manufacturer of a product has included a printed price reduction like '10p off RRP' on the packaging, you should pass this on to your customers.
If the item carries a pre-printed price that's higher than the price you'll charge, you're making a price comparison. You should treat the pre-printed price in the same way as an RRP.
Sales and special events
The rules covering pricing information also apply to sales and special events. Key requirements include:
- if you buy goods especially for a sale, and you make this clear to consumers, you shouldn't quote a higher price when you say that the goods are special purchases
- if you display a general notice advertising a reduction from the marked price, the notice should make it clear if the marked price on individual items isn't your own previous price
- you shouldn't use general notices advertising a reduction like 'up to 50% off' unless the biggest reduction you quote applies to a significant proportion of the range of products on offer that are included in the promotion
- if you extend your sale period you should make the new circumstances clear
Free offers and similar promotions
The law bans traders from describing a product as 'free' if a customer has to pay anything for it apart from any unavoidable cost of responding to the offer and the cost of collection or delivery.
You should make it clear exactly what people must do to get a free or reduced-price offer - for example, collecting tokens or paying for delivery.
Also on this siteContent category
Source URL
/content/price-comparison-rules-recommended-retail-prices-sales-offers
Links
Price comparison rules: perishables, distance sales, further reductions
Making price comparisons in special cases such as perishable goods and distance contracts, and making a series of price reductions over time.
There are guidelines to help you when you make price comparisons in special cases such as:
- on food, drink and perishable goods
- in distance selling contracts
- when you're making a series of reductions
Food, drink and perishable goods
Generally, the price you should use for any price comparison is your most recent price available for 28 days or more in a row. However, if you reduce an item of food or drink for quick sale because it's close to exceeding its shelf life, you can use a previous price that applied for a shorter period if this is reasonable in the circumstances. The price you use for the comparison should be the last price that the product was on sale for in the same outlet.
This also applies to perishable non-food items if they have a short shelf life - for example, less than six weeks.
Distance contracts
If you only sell products through distance contracts so there's no face-to-face contact with your customers, you shouldn't make a price comparison with a previous price that wasn't your own last price.
You might sell the same products for different prices from different types of outlets - for example online and in your shop. If you compare one price with another that's available in a different outlet, you'll need to explain this clearly.
Making a series of reductions
If you advertise a price reduction and then offer further discounts, the first reduction may have applied for a shorter period than would generally be considered reasonable when compared to the original full price. Where this happens, you should make sure people can understand the reductions by showing the:
- highest price
- reduced price or prices
- current selling price
Also on this siteContent category
Source URL
/content/price-comparison-rules-perishables-distance-sales-further-reductions
Links
Price comparison rules: conditional and introductory offers
Making price comparisons during promotions such as introductory offers, offers that are conditional on factors like quantity and special customer groups.
There are special guidelines to follow when you make price comparisons during introductory offers and other promotional activities.
Introductory offers
When you provide pricing information, you should take care not to:
- call a promotion an 'introductory offer' if you don't intend to offer the same product for sale at a higher price later
- let an offer go on for such a long time that it's misleading to call it 'introductory' - it's best to say when the offer will end and stick to it
- indicate an after-promotion price for an item if you don't intend to offer identical products at that price for a reasonable time - you should clearly explain what you mean if you quote a future price
Comparisons with prices related to different circumstances
The law says that all price comparisons should be fair and reasonable. If you're not comparing like with like, you should give a clear and unambiguous explanation of the differences.
Carefully consider making price comparisons for:
- different quantities - for example, 30 pence each or four for a pound
- goods in a different condition - such as a reduction for seconds
- goods in a different state - such as a lower price for something that needs home assembly
- different availability - for example, a reduction in the price of goods that are normally only available to order
- special groups of customers - such as discounts for pensioners
Also on this siteContent category
Source URL
/content/price-comparison-rules-conditional-and-introductory-offers
Links
Avoid misleading pricing information
Matters that businesses need to be aware of so that the price information they give to consumers isn't misleading such as including VAT.
Consumer protection legislation bans traders from giving misleading information about prices. This could include quoting a price that's lower than the one that actually applies to persuade a customer to buy something they might not otherwise have bought.
You must not show one price in an advert, on a website, in a window display, on shelf marking or on the item itself and then charge a higher price at the point of sale or checkout.
There are also specific regulations that apply to particular types of sale or ways of selling - including:
- distance selling contracts
- package travel
- estate agency
Your local trading standards service can advise you on the specific regulations that apply to your type of business.
VAT
All the pricing information that you give to consumers must include VAT at the appropriate rate. You must display the total price prominently so people can see it clearly.
If all your trade is with business customers, you can legally display VAT-exclusive prices, so you can show the net price and the VAT separately.
Price indications that later become misleading
You should monitor all your pricing information to make sure it hasn't become misleading. For example, a price you quoted previously may no longer be accurate because you haven't updated it following a change in the VAT rate.
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What you need to know about packaging and labelling
In this guide:
What you need to know about packaging and labelling
The law about the packaging and labelling of products including information on quantity, composition, place and date of manufacture.
Any descriptions of goods you trade must be accurate - it's a criminal offence if they're not.
This applies to both the writing and the illustrations on your packaging and labelling. Among other things, you must not be misleading about:
- quantity or size
- composition
- method of manufacture
- place and date of manufacture
- fitness for stated purpose
- endorsements by people or organisations
The law applies to you if you sell goods to the public or manufacture goods.
Origin marking
Usually there is no legal requirement for goods to be marked with their place of origin - but you can do so if you wish.
However, if you do, the origin markings must be accurate.
Pricing
It is an offence to give consumers misleading pricing information about goods and services. The regulations apply to any method used to indicate a price, for example, in a written notice or verbally.
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Labelling and packaging rules for specific sectors
The legal requirements for price-marking and labelling precious metals, footwear, food, drink tobacco and toys.
There are many special rules regulating packaging and labelling in specific industries.
Some of the industries where special packaging and labelling is required include:
- Gold, silver, platinum and palladium: If you sell goods that are not hallmarked it can be an offence.
- Footwear: Labelling of footwear regulations state that the main materials the footwear is made from must appear on the label. It's an offence to sell footwear without information about its composition.
- Food and drink: Labels must be clear and include certain information. You must ensure that any packing you use is safe.
- Tobacco products: If you manufacture cigarettes or other smoking products containing tobacco, you must print a picture and text health warning on the packet.
- Toys: If you sell toys, you must ensure they meet the requirements of the Toys (Safety) Regulations 1995. Hood cords, bunk beds, prams and pushchairs are also subject to specific regulations.
All retailers must comply with the price marking order from the Consumer Protection from Unfair Trading Regulations.
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Product labelling and packaging rules for retailers
Understand the special rules for retailers about the price marking and labelling of products.
There are special product labelling and packaging rules that retailers must follow. Legally, you must:
- clearly display the price of goods
- display the unit price of goods sold loose
- use metric measures for unit pricing - note that some products can still be sold in imperial units (such as pints of beer and cider) and you can still provide the imperial measurement for other products providing you also give the metric equivalent
- price in sterling
- include VAT and any other taxes
The price must be marked in a way that is unambiguous, easily identifiable and clearly legible. The indication of the price must be placed close to the product that it relates to and available to the customer without them having to ask for assistance. You may use 'appropriate means', for example, product labelling, shelf-edge marking or price lists.
It is a criminal offence for retailers to give misleading information to consumers about product pricing.
Food and drink
If you sell food and drink as part of a service, for example in a pub or restaurant, you must display your prices. These must:
- state the quantities
- be clear when differences in quantity apply - eg when it is cheaper to buy a pint of beer than two half pints
- include VAT
Pubs and restaurants legally must not omit information which a customer needs to make an informed decision regarding a purchase.
It's an offence to use misleading labels. So, for example, you can't sell a scone and margarine as a 'scone and butter'.
Food that has been irradiated or contains raw milk also needs to be clearly labelled.
Special cases
There are many special regulations which apply to retailers selling specific food and drink products, for example sweets, eggs and sandwiches.
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Product packaging design
How the design of your packaging can help you sell your goods and build your brand.
Product packaging can be an important way of adding value to your product. Good packaging can:
- protect and preserve the product during transportation
- make the product attractive and easy to use
- sell the product by making it stand out from its rivals
- reduce the impact on the environment
- be cost effective
Product packaging can come in many forms, from bags and boxes to tins and bottles. The most suitable packaging for your product will depend on what you are selling and how it is transported and stored. If you produce food or drink products, another important consideration is the safety of food contact materials.
Once you have decided which type of packaging is most suitable for your product you can concentrate on its design. Your design should communicate the main benefits of your product and encourage people to buy your product instead of your competitors.
Unless you have experience in this field it is probably worth getting expert help.
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Packaging and labelling for export
What packaging and labelling considerations businesses should consider when exporting goods including local rules and language.
If you are exporting goods, you need to ensure that the packaging and labelling suits the local market. For example:
- you should ensure your packaging and labelling complies with the regulations of the country you are exporting to
- you may need to translate your labelling into the local language or to mark the origin of your goods
- you may need to follow local customs to make your goods acceptable to customers - eg in some countries packaging containing food products carries a picture of the produce inside
Invest Northern Ireland can help you comply with local regulations.
Your packaging and labelling also needs to withstand the rigours of exporting, especially if the products are fragile or perishable. As well as your usual product packaging and labels, you need to think about the packaging and labelling you use to transport the goods, eg pallets, shrink wrapping and cartons.
Your products may be transported using several modes of transport before reaching their final destination. Your packaging needs to be suitable for each mode of transport and withstand repeated loading and unloading. Clear labelling helps to prevent goods becoming lost in transit or delayed at customs.
Your freight forwarding company may offer packaging services and be able to advise you on suitable packaging and labelling.
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Packaging - environmental considerations
Environmental regulations and considerations when designing packaging including reducing the weight and volume and your duty of care for waste.
By considering the environment at the design stage you can reduce the cost of your packaging and minimise its impact on the environment. You can also make your product more appealing to consumers who prefer recyclable packaging or packaging from renewable sources.
You must ensure that the packaging you use complies with environmental regulations. The weight and volume of the packaging must be the minimum necessary, and the packaging must be recoverable by recycling, incineration or composting. There are also limits on the level of heavy metals that can be present in packaging.
You also have a duty of care for the waste you produce. The regulations require businesses to ensure that their waste is handled and disposed of or recycled safely.
Businesses with a turnover of over £2 million who handle more than 50 tonnes of packaging must also comply with the Producer Responsibility Obligations (Packaging Waste) Regulations.
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