Trading Standards Service

Accurate descriptions: Used vehicle sales

mmcgroarty — Tue, 31 Oct 2023 11:20:27 +0000

Accurate descriptions: Used vehicle sales mmcgroarty Tue, 31/10/2023 - 11:20

Fair trading, accurate descriptions and Trading Standards

In this guide:

Fair trading for businesses selling goods or services

An overview of the law relating to fair trading and how this may affect your business - including areas such as pricing and product description.
When you sell products and services, you must comply with fair trading laws - covering areas such as:

pricing

weights and measures

descriptions of products and services

the contract between a buyer and seller

competition between businesses

intellectual property and counterfeiting

What are the rules around fair trade?

The law sets out practices that are illegal when selling goods or services. These unfair practices include misleading customers and using aggressive selling practices.

Misleading customers

You must not mislead customers about the goods or services you sell. For example, it is against the law to give customers wrong information, such as advertising something as being reduced when it never costs a higher price. It is also illegal to keep important information hidden. You must be open and honest with your customers.

Aggressive selling

You must not use aggressive selling techniques. It is illegal to pressure a customer to buy goods or services. For example, this might be refusing to leave their home until they make a purchase or constantly contacting them.

Other unfair practices include taking away a customer's statutory rights by displaying signs such as 'sold as seen' or 'no refunds' - a customer is entitled to redress if goods or services are faulty or misdescribed under the rules of the Consumer Rights Act 2015.

Pricing and other fair trading rules

If your business sells goods or services, you must provide the price to customers. This rule applies whether you are selling to individuals or other businesses.

If the price for a good or service is not pre-determined by your business, you must supply, if asked:

the price of the good or service

the method for calculating the price - if you can't give an exact price - so the customer can check the price

a sufficiently detailed estimate

Read more on the rules of pricing goods and services.

You must also give customers:

the general terms and conditions that you use, if any

information on any contract terms governed by the law of a particular country

the existence of an after-sales guarantee, if any, not imposed by law

the main features of the service, if not already apparent from the context

the name of the regulating institution if you work in a regulated profession

information about your insurance cover, the contact details of the insurer and territorial coverage - if you are required to hold professional liability insurance or a guarantee

contact details where any complaint can be made

your legal status and form (for example, whether you are a sole trader or a limited company)

Your business address and contact details where you can be reached directly

Note that this list is not exhaustive and not all service providers are covered by these rules. There may also be further information that you must provide to a customer if they ask for it.

Fair trading law for certain goods and services

There are trading laws covering businesses that deal in specific goods and services, such as:

property

holidays

Understanding the laws that affect you is required for running a successful business. If you don't comply, you could face legal penalties. It could also damage your business reputation.
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Accurate descriptions: Rules for describing your products and services

How to describe your products and services in a lawful way in line with consumer protection legislation.
Any description of a product, including goods, services and digital content, a trader (either yourself or another trader) or any other matter connected to a consumer’s transactional decision must not mislead them or contain false or untruthful information.

You must also not omit details about products, including goods, services and digital content, or omit any information that is legally required, such as information required from an invitation to purchase or information required in consumer contracts, to ensure your customers are able to make a fully informed decision about whether to buy or not.

The Digital Markets, Competition and Consumers Act 2024 (DMCCA) makes it an offence to engage in an unfair commercial practice. This includes anything a trader does or fails to do when promoting or supplying a product, including goods, services and digital content, to consumers.

Dishonest practices could include untruthful advertising, omitting important information, or providing deceptive after-sales information. Using these unfair practices, known as a misleading action and a misleading omission, breach the act. and are potentially a criminal offence.

Any business that trades in goods or services must comply with the act. Directors, managers and other employees can also be liable to follow the rules.

Transactional decision

The misleading information given or information not provided to a consumer must cause, or be likely to cause, a consumer to make a different transactional decision.

A transactional decision is any decision a consumer makes in relation to a product. It can be taken before, during or after a purchase is made or a contract is agreed. There doesn’t have to be an actual transaction for there to be a transactional decision.

Examples of transactional decisions include:

decision to visit a shop, click on a website, view a property or attend a sales presentation

decision to buy a product like goods, services, digital content

decision to sell a product (to a trader or another consumer)

decision to sign a contract

decision to exercise their rights, for example use their right to cancel or seek a repair or replacement of faulty goods

decision to pay a debt

What is a misleading action under unfair trading law?

A misleading action occurs when information relating to a product or a practice contains false information or is in some way untruthful, or its overall presentation deceives or is likely to mislead the consumer.

A false or untruthful product description can mislead a customer with information relating to things such as the price or how the price is calculated, or the need for a service, part, replacement or repair. For example, a customer pays £50 for a product, without being told the price does not include VAT. As this was not explained in the advert, the advert is misleading.

For more information on practices that could be misleading actions, see the Digital Markets, Competition and Consumers Act 2024 (DMCCA).

What is a misleading omission under unfair trading law?

A misleading omission is when a trader omits or hides material information or provides it in an unclear, unintelligible, ambiguous, or untimely way. For example, to make an informed decision about whether to buy or how much to pay, the consumer buying a car needs to know whether the vehicle has previously been an insurance write-off; you, as the trader, have to disclose this information, whether or not the consumer asks for it.

For a practice to be unfair, the trader's misleading action or omission must be likely to cause a consumer to take a transactional decision that they would not have taken otherwise - as above, this could be, for example, to buy as opposed to not buy, having work done or not, or paying a different amount for goods.

How can a misleading action or omission be given?

When selling, a misleading action or omission can be provided in several ways, including:

verbally

in writing (for example, in an advert, a brochure, or on an invoice or order form)

by illustration (for example, in advertisements or on packaging)

by implication

What does the law require?

The Digital Markets, Competition and Consumers Act does not cover insignificant inaccuracies. Only a court can decide whether the actions of a trader would adversely affect a consumer.

You can check which laws apply to the goods and services you trade in by asking your local Trading Standards office.

Avoiding committing an offence

In the first instance, you should ensure that all descriptions are not misleading. This means that not only should they be accurate, but they should be presented in a way that would not mislead - for example, by being understood in the wrong context.

To avoid committing misleading omissions, traders should ensure that they are open and honest with customers, including anything that might make the product or the offer less attractive.

A consumer’s right to redress

If a consumer has been the victim of misleading actions or aggressive selling, there are regulations which give them a right to redress through a civil court order. The customer may be entitled to claim compensation, a price reduction or cancel the contract. These rights do not apply to misleading omissions.

The rights of redress for affected consumers are currently provided for by the Consumer Protection from Unfair Trading Regulations 2008 (CPRs).
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Accurate descriptions: Used vehicle sales

How to describe used vehicle sales in a lawful way in line with consumer protection legislation.
If you sell used vehicles, you must ensure that the descriptions are listed accurately. This includes the mileage, condition, history and specification. This type of information will likely affect a consumer's decision whether to purchase the vehicle. These descriptions are controlled by the Digital Markets, Competition and Consumers Act 2024 (DMCCA).

How to ensure accurate descriptions are applied

To comply with the law, a trader and their employees need to show that they took all reasonable steps to trade fairly and honestly with their customers when selling used vehicles. This practice is known as acting with due diligence. Reasonable steps you would carry out as a trader include:

When buying motor vehicles always ask about their mileage and make sure it is written on the purchase document and not given verbally. Get the seller's signature declaring whether the history is correct, incorrect or unknown.

Do not rely solely on the mileage statement of the previous owner unless they are the original owner. Only offer a vehicle for sale as genuine mileage when the full mileage history is known.

Check the vehicle’s history. For example, whether it is recorded as stolen, is subject to outstanding finance, has been written off as an insurance loss or accident damaged.

Check that you have the right to sell the vehicle. For instance, is the vehicle still subject to a hire purchase agreement. If yes, you do not own it.

When inspecting a vehicle, make sure that the overall condition, both mechanically and physically is consistent with its age. Look at the vehicle's service history and MOT history to determine if there is a consistent increase in mileage over time.

Inspect the vehicle yourself including reading the service history and contacting traders who have previously serviced the vehicle to establish that the service history is correct and keep a record of this inspection.

Ensure that all staff who may meet customers are properly trained and instructed in these matters and have access to all relevant details (for example, purchase invoices and results of any checks made).

What is unlawful – mileage description

The mileage displayed on a vehicle odometer should accurately represent the distance the vehicle has travelled. Displaying an incorrect odometer reading may be a misleading action. To comply with the law, you must tell the consumer the accurate mileage, as failure to do this may be a misleading omission.

There are several practices that are prohibited, including:

Making a misleading statement about a vehicle’s mileage, such as altering the odometer to a lower figure or zero, or making other false claims in writing or verbally.

Failing to provide all the information required when making an invitation to purchase, for example advertising a car with a price that doesn’t include VAT. See what information must not be omitted from invitations to purchase.

Selling a vehicle that has been subject to a prior misleading action or omission. This could include having the vehicle on the forecourt, selling it with an incorrect odometer reading or not informing the consumer of the actual mileage.

Having false mileage in an advertisement, for example, 'low mileage' stickers.

Not telling the consumer the odometer reading or the fact that an odometer unit was faulty and replaced (either with a new or second-hand unit) may be a misleading omission.

If the accuracy of the odometer reading is in doubt, you must make this clear to prospective customers. This is usually done using disclaimers (which obscure the entire odometer reading). It is always advisable to use disclaimers to avoid the potential false mileage description being read by consumers.

It is not sufficient to disclaim all mileage without carrying out checks to confirm their accuracy. Even if a trader wasn't aware that the mileage was wrong, their actions could still be against the law.

You should be able to show that you have checks in place to verify the mileage on the odometer and show that these checks are carried out. However, despite having these checks in place, verifying the mileage recorded may still be impossible, and you should state this to customers.

What is unlawful – description of used vehicle sales

Examples of unlawful trading practices include:

Having false information in an advertisement. For example, ‘in excellent condition’ or ‘drives like new’ when you have knowledge of an existing fault with the vehicle.

Making incorrect statements or not informing consumers of the correct service history, previous accident damage, number of previous owners, technical specification (e.g. engine size, miles per gallon), insurance grouping or environmental performance.

Misleading consumers by making them believe they have no right to redress under the Consumer Rights Act, using statements such as 'sold as seen' or 'trade sale'.

Hiding additional costs. For example, administration fees, delivery or other non-optional charges.

Not disclosing that a vehicle was previously used for business purposes, such as rental or taxi.

The DMCCA lists banned trading practices which are considered unfair and provide a defence to any criminal charges. For example, a banned practice includes claiming or creating the impression that you are a private seller when you are a trader.
A full list of the 32 banned practices can be found in the Digital Markets, Competition and Consumers Act 2024 (DMCCA).

All unlawful practices can be made verbally, in writing, visually or by association. They can be made by anyone in your business, including staff members. Businesses, business owners and staff members can all be held accountable for their actions.

Used vehicle warranties

Any warranty or guarantee you supply free of charge or sell separately with a vehicle is in addition to a consumer's legal rights under the Consumer Rights Act 2015. You cannot refuse to deal with a complaint because it is excluded from a warranty, or the warranty period has expired. Any warranty you give is legally binding.
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Working with Northern Ireland Trading Standards Service

How Trading Standards can help your business comply with the law when a customer has lodged a complaint about your business or you need general advice.
The Northern Ireland Trading Standards Service (TSS) enforces the laws on goods and services within Northern Ireland.

Customer complaints

The TSS receives complaints from customers about a wide range of consumer issues, including:

misleading descriptions or prices

inaccurate weights and measures

consumer credit

unfair commercial practices

The TSS can investigate customers' complaints and take appropriate enforcement action where necessary. This ranges from advice to warnings to criminal prosecutions. In some cases the business may want to seek independent legal advice.

Find out more

If you'd like general advice regarding any consumer legislation - you should contact TSS. It can provide free and impartial guidance.

It may be that by seeking their advice on your trading policies, you can prevent any complaints arising.
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Support and guidance for home heating oil suppliers

sdonegan — Wed, 19 Oct 2022 07:45:00 +0000

Support and guidance for home heating oil suppliers sdonegan Wed, 19/10/2022 - 08:45

Support and guidance for home heating oil suppliers

Pricing inspections

sdonegan — Fri, 19 Aug 2022 17:17:35 +0000

Pricing inspections sdonegan Fri, 19/08/2022 - 18:17

Pricing information

In this guide:

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.

Download the poster to view the requirements of consumer legislation (PDF, 738K).

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 ‘all’ or ‘everything’ 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’s 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 Schedule 20 of the Act (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 rules governing misleading advertisements.

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
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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, “Buy one, get one free”.

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’ 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.

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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.
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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
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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�㽶��ɫ��Ƶ any 'best price' claims with evidence showing that you're offering a lower price than your competitors
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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.
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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
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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
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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 trading standards service 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.
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Online selling rules

amulvenna — Fri, 26 Jan 2018 15:51:58 +0000

Online selling rules amulvenna Fri, 26/01/2018 - 15:51

Online selling rules

The Consumer Rights Act

sdonegan — Mon, 24 Aug 2015 09:27:52 +0000

The Consumer Rights Act sdonegan Mon, 24/08/2015 - 10:27

Introduction

Consumer contracts

jhobbs — Thu, 12 Jun 2014 14:38:33 +0000

Consumer contracts jhobbs Thu, 12/06/2014 - 15:38

Introduction

Pricing information

Migrator — Fri, 11 Mar 2011 17:42:00 +0000

Pricing information Migrator Fri, 11/03/2011 - 17:42

Introduction

Pricing legislation

Migrator — Fri, 11 Mar 2011 17:41:00 +0000

Pricing legislation Migrator Fri, 11/03/2011 - 17:41

Pricing information

In this guide:

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.

Download the poster to view the requirements of consumer legislation (PDF, 738K).

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 ‘all’ or ‘everything’ 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’s 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 Schedule 20 of the Act (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 rules governing misleading advertisements.

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
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Trading Standards Service

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Price marking

Price marking in grocery stores

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Product labelling and packaging

Customer protection

Comply with advertising standards

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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, “Buy one, get one free”.

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’ 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.

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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.
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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
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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�㽶��ɫ��Ƶ any 'best price' claims with evidence showing that you're offering a lower price than your competitors
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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.
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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
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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
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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 trading standards service 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.
Help

Trading Standards Service Northern Ireland

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Trade and treat customers fairly

Migrator — Wed, 02 Feb 2011 15:23:00 +0000

Trade and treat customers fairly Migrator Wed, 02/02/2011 - 15:23

Introduction

Online contracts: formation and terms

Migrator — Mon, 09 Aug 2010 12:06:00 +0000

Online contracts: formation and terms Migrator Mon, 09/08/2010 - 13:06

Trading Standards Service

Accurate descriptions: Used vehicle sales

Fair trading for businesses selling goods or services

What are the rules around fair trade?

Misleading customers

Aggressive selling

Pricing and other fair trading rules

Fair trading law for certain goods and services

Source URL

Links

Accurate descriptions: Rules for describing your products and services

Transactional decision

What is a misleading action under unfair trading law?

What is a misleading omission under unfair trading law?

How can a misleading action or omission be given?

What does the law require?

Avoiding committing an offence

A consumer’s right to redress

Source URL

Links

Accurate descriptions: Used vehicle sales

How to ensure accurate descriptions are applied

What is unlawful – mileage description

What is unlawful – description of used vehicle sales

Used vehicle warranties

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Links

Working with Northern Ireland Trading Standards Service

Customer complaints

Find out more

Source URL

Links

Support and guidance for home heating oil suppliers

Pricing inspections

Pricing legislation

Unit pricing

VAT and other charges

Promotions

Pricing legislation

Digital Markets, Competition and Consumers Act 2024

Other legislation

Business to business

Source URL

Links

Pricing inspections

What to expect from a Trading Standards visit

Identifying Trading Standards Officers

Source URL

Links

Price comparison rules: previous prices

Source URL

Links

Price comparison rules

Source URL

Links

Price comparison rules: competitors

Source URL

Links

Price comparison rules: recommended retail prices, sales, offers

Comparison with a recommended retail price or similar

Pre-printed prices

Sales and special events

Free offers and similar promotions

Source URL

Links

Price comparison rules: perishables, distance sales, further reductions

Food, drink and perishable goods

Distance contracts

Making a series of reductions

Source URL

Links

Price comparison rules: conditional and introductory offers

Introductory offers

Comparisons with prices related to different circumstances

Source URL

Links

Avoid misleading pricing information

VAT

Price indications that later become misleading

Source URL