Pricing information
Guidance for traders on the regulations covering selling price information they provide to consumers to prevent misleading them.
As a trader, you must comply with regulations that protect consumers from unfair commercial practices. The regulations ban business practices that might persuade people to buy a product they might not otherwise have bought. They also require traders to give clear and correct information about their selling prices.
Implementing best practice guidelines when you provide information about your selling prices will help you comply with the law and make sure you don't mislead people.
This guide recommends a set of best practice guidelines and outlines the main steps you should take when you provide pricing information. It also explains where you can find more detailed information and help with pricing issues.
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
To understand their legal requirements, retailers can use the resources provided by the Competition and Markets Authority (CMA) in collaboration with Trading Standards.
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 鈥榓ll鈥 or 鈥榚verything鈥 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鈥檚 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.
Digital Markets, Competition and Consumers Act 2024
If you promote or sell goods, services or digital content to consumers, you must comply with the Digital Markets, Competition and Consumers Act 2024 (DMCCA).
This act bans traders from using any unfair commercial practices. A commercial practice is unfair if it causes a consumer to take a transactional decision they would not otherwise have taken, such as buying goods or services or visiting a shop or website. A commercial practice will also be unfair if it omits information from an invitation to purchase (for example you advertise a product price but do not include VAT), or if it is listed in (commercial practices which are unfair in all circumstances).
Commercial practices are any actions you as a trader take - or omissions you make - that are directly connected to the promotion or supply of goods, services or digital content to members of the public.
Commercial practices include providing information about prices. Examples of unfair commercial practices in relation to pricing include:
- 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 .
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
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, 鈥淏uy one, get one free鈥.
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鈥 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.
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.
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
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 91香蕉黄色视频 any 'best price' claims with evidence showing that you're offering a lower price than your competitors
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.
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
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
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 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.