Price Claims and VAT
17 Price Claims and VAT
Rule 17 has been amended to correctly reflect the Consumer Protection from Unfair Trading Regulations 2008. Rule 17 has been replaced by rule 17.1, which applies to advertisements that appear after 21 November 2008.
Advertisements indicating price comparisons or reductions must comply with all relevant requirements of the Consumer Protection Act 1987 (Part 3) and Regulations made under it, including the Code of Practice for Traders on Price Indications 2005, and the Price Marking Order 2004. In addition, all prices quoted in advertisements must include VAT, except for business-to-business advertisements, where it must be made clear that prices are exclusive of VAT.
Actual and comparative prices quoted must be accurate at the time of broadcast and must not mislead. Claims of ‘lowest prices’ must be supported by evidence from the retailer that none of his competitors sells the advertised product or service at a lower price. Claims of ‘unbeatable prices’ or ‘you cannot buy cheaper’ must be supported by evidence from the retailer that his prices are as low as his competitors.
17.1 Accurate pricing
Advertisements indicating price comparisons or reductions must comply with all relevant requirements of the Consumer Protection from Unfair Trading Regulations 2008 and the DBERR’s Pricing Practices Guide 2008. In addition, all prices quoted in advertisements must include VAT, except for business-to-business advertisements, where it must be made clear that prices are exclusive of VAT.
Actual and comparative prices quoted must be accurate at the time of broadcast and must not mislead. Claims of ‘lowest prices’ must be supported by evidence from the retailer that none of his competitors sells the advertised product or service at a lower price. Claims of ‘unbeatable prices’ or ‘you cannot buy cheaper’ must be supported by evidence from the retailer that his prices are as low as his competitors.
This rule reflects the Consumer Protection from Unfair Trading Regulations 2008. This rule applies to advertisements that appear after 21 November 2008.
17.2 Other rules for Advertisements that feature Prices
a) licensees must be satisfied that the advertisers will not use the technique of switch selling, where their sales staff refuse to show the advertised product, refuse to take orders for it or to deliver it within a reasonable time, or demonstrate a defective sample of it, in order to promote a different product.
This rule reflects the Consumer Protection from Unfair Trading Regulations 2008. This rule applies to advertisements that appear after 21 November 2008.
b) advertisements must state any reasonable grounds the advertisers might have for believing that they might not be able to supply the advertised or an equivalent product at the advertised price, within a reasonable period and in reasonable quantities.
This rule reflects the Consumer Protection from Unfair Trading Regulations 2008. This rule applies to advertisements that appear after 21 November 2008.