Compare if you dare - new Retailers' Price Comparisons Help Note

25 October 2004

The Committee of Advertising Practice (CAP) has today published revised guidelines for retailers making price comparisons in their non-broadcast marketing communications.

The Help Note on Retailers' Price Comparisons has been written following consultation with various retailers, trade associations and regulatory bodies, and updates and replaces the Help Note on Supermarket "Basket of Goods" Comparison. It is designed to help advertisers follow the rules in the British Codes of Advertising and Sales Promotion (the Codes) and also contains a "key points" section to help staff working in publisher advertising departments to do quick checks of the advertisement they publish.

Guy Parker, Secretary of CAP, explained, "In competitive sectors like retailing, marketers will often use price comparisons as a key message in their advertising. And price comparisons can be such a good thing; informing the public about good deals and promoting vigorous competition that keeps prices low. But it is all too easy to get it wrong - and when that happens, marketers can end up being censured by the ASA and subject to public disapproval. They can save themselves a ton of trouble by following this invaluable Help Note. And if they still need a hand, the can contact the CAP Copy Advice team for some expert assistance."
The main provisions of the Help Note are:

• Marketers should avoid placing advertisements containing price comparisons in media with long copy deadlines if their competitors are likely to change their prices quickly in response to their marketing communications.
  
• It should be clear whether prices stated in comparisons are promotional prices and, if so, the comparison should be made with competitors’ promotional prices.
  
• Marketers should identify where and when comparative surveys were carried out.
  
• Price comparisons should be made only with retailers in the same locality unless they can show that it makes no difference to compare prices with retailers in other localities (eg. if there is a national pricing policy).
  
• Marketers must not exaggerate the length of time for which their prices have been lower than competitors’ prices.
  
• Marketers comparing typical weekly shops should ensure that the selection of goods does not skew the total saving unfairly.

A copy of the Help Note can be found on the CAP website at www.cap.org.uk. Marketers, agencies and media can also get guidance from the CAP Copy Advice team on 020 7580 4100 (tel), 020 7580 4072 (fax) or copyadvice@cap.org.uk.