Pricing of Goods and Services

What does the law require?

• Normally, when a retailer offers goods for sale there must be a written indication of the selling price. This would include products being offered for sale on the Internet.
• Every price indication must be unambiguous, easily identifiable as applying to the goods and clearly legible.
• Any price given must not be misleading.
• All retail prices must include VAT.
• Where there are non-optional extras that must be purchased with the goods, their price must either be included in the main price or displayed just as prominently together with an explanatory statement.
• Price comparisons must be factual and statements such as 'worth' or 'valued at' should be avoided.
• When advertising price reductions, the comparison is assumed to be with the last selling price of the same item at the same premises. If this is not the case you must explain the circumstances of when the higher price applied so that the comparison is fair and meaningful.

What if I don't comply with the law?

It is a criminal offence to:

• Fail to provide a price indication that is clear and legible and clearly associated with the goods.
• Give a misleading price indication: to charge more than the indicated price, to mislead as to the previous price of an item and thereby suggest that a reduction is greater than in fact it is.

How can a trader avoid committing an offence?

• Make sure your price indications are clear.
• Regularly check to ensure that your indicated prices are correct and keep records of these checks.
• Make sure that you can substantiate any price comparisons that you make.
• Make sure that the terms and conditions of any special offers or price reductions are clearly explained.

The Department of Trade and Industry guidance on price indications can be found at www.dti.gov.uk/access/price_indi/contents.htm

Price Indications (Method of Payment) Regulations 1991

These regulations apply to traders who make a charge to consumers for accepting payment by other than cash means (e.g. when you charge for accepting cheques, debit or credit cards).

If you do make such a charge:

• Where you give a price indication that does not apply to all methods of payment that you accept, you must also state to which method of payment that price does not apply.
• You must also state the difference between the marked price and any other such price expressed either as an amount of money or in percentage terms.

In practice, it is acceptable to display a prominent notice stating your charges. For example, ' a fee of £1 will be charged on all credit card purchases of less than £10'.

The Department of Trade and Industry's guidance note on the regulations can be found at www.dti.gov.uk/ccp/topics1/guide/pricemethod.pdf .

Please Note

This leaflet is not an authoritative interpretation of the law and is intended only for guidance. For further information please contact your local Consumer Protection or Trading Standards office.

Trading Standards Division, 3rd Floor, Wallasey Town Hall, Brighton Street, Wallasey, Wirral CH44 8ED
Telephone: (0151) 691 8020    Fax: (0151) 691 8098
Internet World Wide Web http://www.tradingstandards.gov.uk/wirral/
Electronic Mail: tradingstandards@wirral.gov.uk