Misleading Advertising: www.poshflooring.co.uk breaches the UK Advertising Code for quoting VAT-exclusive prices without referring to the amount or rate of VAT payable and failing to qualify that this is the “business price” or “trade price”.
The Compliance team contacted Posh Flooring Online Ltd regarding www.poshflooring.co.uk. We noted that whilst VAT inclusive prices are quoted on www.poshflooring.co.uk as default prices, consumers are also able to view VAT-exclusive prices that are quoted without the accompanying amount or rate of VAT payable.
The CAP Code states that VAT-exclusive prices must be accompanied by a prominent statement of the amount or rate of VAT payable.
Furthermore, we noted that the price statements in the ad were not clearly addressed to those who paid no VAT or could recover VAT as required by the CAP Code, for example, by stating “business price” or “trade price”.
In order to comply with the Code, www.poshflooring.co.uk would need to include a prominent statement beside each VAT-exclusive price which states the amount or rate of VAT payable and include a qualification that this is the “business price or “trade price”.
The CAP Compliance team contacted Posh Flooring Online Ltd but, in the absence of a response, took the decision on 19 July 2017 to place their company details on this section of the ASA website. These details shall remain in place until such time as Posh Flooring Online Ltd has amended www.poshflooring.co.uk to ensure compliance with the CAP Code.