Accurate descriptions: Used vehicle sales
Fair trading for businesses selling goods or services
An overview of the law relating to fair trading and how this may affect your business - including areas such as pricing and product description.
When you sell products and services, you must comply with fair trading laws - covering areas such as:
- pricing
- weights and measures
- descriptions of products and services
- the contract between a buyer and seller
- competition between businesses
- intellectual property and counterfeiting
What are the rules around fair trade?
The law sets out practices that are illegal when selling goods or services. These unfair practices include misleading customers and using aggressive selling practices.
Misleading customers
You must not mislead customers about the goods or services you sell. For example, it is against the law to give customers wrong information, such as advertising something as being reduced when it never costs a higher price. It is also illegal to keep important information hidden. You must be open and honest with your customers.
Aggressive selling
You must not use aggressive selling techniques. It is illegal to pressure a customer to buy goods or services. For example, this might be refusing to leave their home until they make a purchase or constantly contacting them.
Other unfair practices include taking away a customer's statutory rights by displaying signs such as 'sold as seen' or 'no refunds' - a customer is entitled to redress if goods or services are faulty or misdescribed under the rules of the Consumer Rights Act 2015.
Pricing and other fair trading rules
If your business sells goods or services, you must provide the price to customers. This rule applies whether you are selling to individuals or other businesses.
If the price for a good or service is not pre-determined by your business, you must supply, if asked:
- the price of the good or service
- the method for calculating the price - if you can't give an exact price - so the customer can check the price
- a sufficiently detailed estimate
Read more on the rules of pricing goods and services.
You must also give customers:
- the general terms and conditions that you use, if any
- information on any contract terms governed by the law of a particular country
- the existence of an after-sales guarantee, if any, not imposed by law
- the main features of the service, if not already apparent from the context
- the name of the regulating institution if you work in a regulated profession
- information about your insurance cover, the contact details of the insurer and territorial coverage - if you are required to hold professional liability insurance or a guarantee
- contact details where any complaint can be made
- your legal status and form (for example, whether you are a sole trader or a limited company)
- Your business address and contact details where you can be reached directly
Note that this list is not exhaustive and not all service providers are covered by these rules. There may also be further information that you must provide to a customer if they ask for it.
Fair trading law for certain goods and services
There are trading laws covering businesses that deal in specific goods and services, such as:
- property
- holidays
Understanding the laws that affect you is required for running a successful business. If you don't comply, you could face legal penalties. It could also damage your business reputation.
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Accurate descriptions: Rules for describing your products and services
How to describe your products and services in a lawful way in line with consumer protection legislation.
Any description of products or services you sell or hire to customers must be accurate and not mislead them. You must provide consumers with the correct information and not omit details about the products and services so they are fully informed about whether to buy them.
The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) make it an offence to mislead consumers about goods and services. The regulations apply to commercial practices relating to products (including goods, services and digital content) before, during and after a contract is agreed.
Dishonest practices could include untruthful advertising, omitting important information, or providing deceptive after-sales information. Using these unfair practices, known as a misleading action and a misleading omission, breach the regulations (and are potentially a criminal offence).
Any business that trades in goods or services must comply with the regulations. Directors, managers and other employees can also be liable to follow the rules.
What is a misleading action under unfair trading law?
A misleading action is when a product contains false information or is in some way untruthful, or its overall presentation deceives or is likely to mislead the average consumer.
A false or untruthful product description can mislead a customer with information relating to things such as the price or how the price is calculated, or the need for a service, part, replacement or repair. For example, a customer pays £50 for a product, without being told the price does not include VAT. As this was not explained in the advert, the advert is misleading.
You can view a full list in the Consumer Protection from Unfair Trading Regulations 2008 (CPRs).
What is a misleading omission under unfair trading law?
A misleading omission is when a trader omits or hides material information or provides it in an unclear, unintelligible, ambiguous, or untimely way. For example, to make an informed decision about whether to buy or how much to pay, the average consumer buying a car needs to know whether the vehicle has previously been an insurance write-off; you, as the trader, have to disclose this information, whether or not the consumer asks for it.
The misleading information given (or information not provided) to a consumer must cause, or be likely to cause, the average consumer to make a different transactional decision. An example would be the consumer making a purchase they would not otherwise have made. Transactional decisions also include decisions made after a consumer has bought a product – for example, their decision to return a faulty product or accept an offer of redress.How can a misleading action or omission be given?
When selling, a misleading action or omission can be provided in several ways, including:
- verbally
- in writing (for example, in an advert, a brochure, or on an invoice or order form)
- by illustration (for example, in advertisements or on packaging)
- by implication
What does the law require?
The Consumer Protection from Unfair Trading Regulations 2008 do not cover insignificant inaccuracies. Only a court can decide whether the actions of a trader would adversely affect the average consumer.
You can check which laws apply to the goods and services you trade in by asking your local Trading Standards office.
A consumer’s right to redress
If a consumer has been the victim of misleading actions or aggressive selling, the regulations give them the right to redress through a civil court order. The customer may be entitled to claim compensation, a price reduction or cancel the contract. These rights do not apply to misleading omissions.
The Department for Business and Trade, formerly the Business, Energy and Industrial Strategy, has produced business guidance on the rights of consumers under the regulations - read more on Misleading and Aggressive Commercial Practices: New Private Rights for Consumers.
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Accurate descriptions: Used vehicle sales
How to describe used vehicle sales in a lawful way in line with consumer protection legislation.
If you sell used vehicles, you must ensure that the descriptions are listed accurately. This includes the mileage, condition, history and specification. This type of information will likely affect a consumer's decision whether to purchase the vehicle. These descriptions are controlled by the Consumer Protection from Unfair Trading Regulations 2008 (CPRs).
How to ensure accurate descriptions are applied
To comply with the law, a trader and their employees need to show that they took all reasonable steps to trade fairly and honestly with their customers when selling used vehicles. This practice is known as acting with due diligence. Reasonable steps you would carry out as a trader include:
- When buying motor vehicles always ask about their mileage and make sure it is written on the purchase document and not given verbally. Get the seller's signature declaring whether the history is correct, incorrect or unknown.
- Do not rely solely on the mileage statement of the previous owner unless they are the original owner. Only offer a vehicle for sale as genuine mileage when the full mileage history is known.
- Check the vehicle’s history. For example, whether it is recorded as stolen, is subject to outstanding finance, has been written off as an insurance loss or accident damaged.
- Check that you have the right to sell the vehicle. For instance, is the vehicle still subject to a hire purchase agreement. If yes, you do not own it.
- When inspecting a vehicle, make sure that the overall condition, both mechanically and physically is consistent with its age. Look at the vehicle's service history and MOT history to determine if there is a consistent increase in mileage over time.
- Inspect the vehicle yourself including reading the service history and contacting traders who have previously serviced the vehicle to establish that the service history is correct and keep a record of this inspection.
- Ensure that all staff who may meet customers are properly trained and instructed in these matters and have access to all relevant details (for example, purchase invoices and results of any checks made).
What is unlawful – mileage description
The mileage displayed on a vehicle odometer should accurately represent the distance the vehicle has travelled. Displaying an incorrect odometer reading may be a misleading action. To comply with the law, you must tell the consumer the accurate mileage, as failure to do this may be a misleading omission.
There are several practices that are prohibited, including:
- Making a misleading statement about a vehicle’s mileage, such as altering the odometer to a lower figure or zero, or making other false claims in writing or verbally.
- Selling a vehicle that has been subject to a prior misleading action or omission. This could include having the vehicle on the forecourt, selling it with an incorrect odometer reading or not informing the consumer of the actual mileage.
- Having false mileage in an advertisement, for example, 'low mileage' stickers.
- Not telling the consumer the odometer reading or the fact that an odometer unit was faulty and replaced (either with a new or second-hand unit) may be a misleading omission.
- If the accuracy of the odometer reading is in doubt, you must make this clear to prospective customers. This is usually done using disclaimers (which obscure the entire odometer reading). It is always advisable to use disclaimers to avoid the potential false mileage description being read by consumers.
- It is not sufficient to disclaim all mileage without carrying out checks to confirm their accuracy. Even if a trader wasn't aware that the mileage was wrong, their actions could still be against the law.
You should be able to show that you have checks in place to verify the mileage on the odometer and show that these checks are carried out. However, despite having these checks in place, verifying the mileage recorded may still be impossible, and you should state this to customers.
What is unlawful – description of used vehicle sales
Examples of unlawful trading practices include:
- Having false information in an advertisement. For example, ‘in excellent condition’ or ‘drives like new’ when you have knowledge of an existing fault with the vehicle.
- Making incorrect statements or not informing consumers of the correct service history, previous accident damage, number of previous owners, technical specification (e.g. engine size, miles per gallon), insurance grouping or environmental performance.
- Misleading consumers by making them believe they have no right to redress under the Consumer Rights Act, using statements such as 'sold as seen' or 'trade sale'.
- Hiding additional costs. For example, administration fees, delivery or other non-optional charges.
- Not disclosing that a vehicle was previously used for business purposes, such as rental or taxi.
The CPRs list banned trading practices which are considered unfair and provide a defence to any criminal charges. For example, a banned practice includes claiming or creating the impression that you are a private seller when you are a trader. A full list of the 31 banned practices can be found in the Consumer Protection from Unfair Trading Regulations 2008 (CPRs)
All unlawful practices can be made verbally, in writing, visually or by association. They can be made by anyone in your business, including staff members. Businesses, business owners and staff members can all be held accountable for their actions.
Used vehicle warranties
Any warranty or guarantee you supply free of charge or sell separately with a vehicle is in addition to a consumer's legal rights under the Consumer Rights Act 2015. You cannot refuse to deal with a complaint because it is excluded from a warranty, or the warranty period has expired. Any warranty you give is legally binding.
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Working with Northern Ireland Trading Standards Service
How Trading Standards can help your business comply with the law when a customer has lodged a complaint about your business or you need general advice.
The Northern Ireland Trading Standards Service (TSS) enforces the laws on goods and services within Northern Ireland.
Customer complaints
The TSS receives complaints from customers about a wide range of consumer issues, including:
- misleading descriptions or prices
- inaccurate weights and measures
- consumer credit
- unfair commercial practices
The TSS can investigate customers' complaints and take appropriate enforcement action where necessary. This ranges from advice to warnings to criminal prosecutions. In some cases the business may want to seek independent legal advice.
Find out more
If you'd like general advice regarding any consumer legislation - you should contact TSS. It can provide free and impartial guidance.
It may be that by seeking their advice on your trading policies, you can prevent any complaints arising.
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Pricing inspections
In this guide:
- Pricing 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
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.
Consumer Protection from Unfair Trading Regulations 2008
If you sell goods or services to consumers, you must comply with the Consumer Protection from Unfair Trading Regulations 2008. These regulations ban traders from using any unfair commercial practices which mislead customers into buying goods or services they might not otherwise have bought. Commercial practices are any actions you take - or omissions you make - that are directly connected to supplying goods and services to members of the public.
Commercial practices include providing information about prices. The regulations specifically ban traders from:
- 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
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
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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.
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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.
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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
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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
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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.
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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
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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
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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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Pricing legislation
In this guide:
- Pricing 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
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.
Consumer Protection from Unfair Trading Regulations 2008
If you sell goods or services to consumers, you must comply with the Consumer Protection from Unfair Trading Regulations 2008. These regulations ban traders from using any unfair commercial practices which mislead customers into buying goods or services they might not otherwise have bought. Commercial practices are any actions you take - or omissions you make - that are directly connected to supplying goods and services to members of the public.
Commercial practices include providing information about prices. The regulations specifically ban traders from:
- 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
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
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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.
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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.
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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
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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
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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.
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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
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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
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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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