Was Now Save Messages - Are they breaking the law?

MJLawson1

Hi Guys,

I would like to understand if there is any law on retailers displaying was now save massages on line?

For example;

I am was looking for a WMD960P washinf machine but i was inform by Hotpoint that is has been replaced by a new model WMD962P. It has only just come out yet there is a site claiming a save message of over £60...can they do this?

http:// www. appliancesdirect .co.uk /Hotpoint_Ultima_8kg_Freestanding_Washing_Machine_WMD962P/version.asp

You may need to remove the spaces.

Thanks

Esqui

Could be an introductory offer?

MJLawson1

Should they not state this somewhere on the page/site?

Hintza

OP you probably have a point but what are you or can you do about it?

If it was me all I would be interested in was finding the cheapest deal and in this case they seem to be the cheapest.

So what is the problem?

Mark_Hewitt

MJLawson1 wrote: »

I am was looking for a WMD960P washinf machine but i was inform by Hotpoint that is has been replaced by a new model WMD962P. It has only just come out yet there is a site claiming a save message of over £60...can they do this?

If it is just "Save £60" on it's own then this will probably mean that it is retailing for £60 under the MRPP.

toffe

I agree with hintza, if it's £60 below the RRP why get your knickers in a twist over the wording of how they tell you it is £60 below the RRP?

If it's a genuine saving off the RRP what's the problem?

It's not exactly on a par with the likes of ASDA adding a penny to 3,000 items for a month just so that they can take that penny back off then put out TV ad's boasting about having "slashed" 3,000 prices in store.

MJLawson1

I agree they may be the cheapest its just the marketing strategy they maybe using to influence customer to believe they are getting deal.

Also I have done some digging after some of your commentsm and found a report which state that RRP's in kitchen appliances are not allowed...

http:// www. competition-commission .org.uk /rep_pub/reports/1997/403elec.htm
Recommendations on prices

We believe that the use of RRPs is so entrenched in the way business is conducted in the UK reference white goods markets that nothing short of their prohibition would deal effectively with the adverse effects we have found. We therefore recommend that:
(a) suppliers should be prohibited from publishing, or otherwise notifying to dealers, the prices that suppliers recommend or suggest that dealers advertise, display or charge when they seek to resell the reference white goods;
(b) suppliers should be prohibited from taking any action to compel or influence dealers to resell the reference white goods at prices higher than those decided on by the dealer; and
(c) dealers should be prohibited from taking steps to persuade suppliers to:
(i) suggest or recommend prices at which dealers should resell the reference white goods; and
(ii) encourage or influence other dealers to resell at prices different from those at which the other dealers themselves wish to resell.
We also recommend the prohibition of certain other practices which influence dealers to adhere to RRPs, and the introduction of a requirement for suppliers to send compliance statements to the DGFT.
Some of our recommendations cover similar ground to certain provisions of the Resale Prices Act 1976 (RPA) but we were told by the Office of Fair Trading (OFT) that a number of shortcomings in the RPA made it difficult to enforce. Our recommendations would remedy some of these shortcomings in relation to the reference white goods.

Oh well, i just dont like being mislead thats all.

Thanks guys for all the comments.

Hintza

MJLawson1 wrote: »

Oh well, i just dont like being mislead thats all.

I don't see how you are being misled. As far as my quick look ascertained just about everyone else is charging the full RRP give or take a couple of quid.

So you are getting a failrly hefty saving +/- £60 if you buy from them.

Mark_Hewitt

But quite often *everywhere* will sell the product for £60 off the RRP. So what saving is there?

I could make an xyz widget for RRP £100 each. But supply them to the shops at 50p each. They sell them for £1 and announce "Save £99!". After all RRP is a figure plucked out of thin air!

toffe

Mark_Hewitt wrote: »

After all RRP is a figure plucked out of thin air!

Exactly, thats why consumers only need concern themselves with the price being asked, ignore the "RRP" what does dealer A want for for it? how does that compare with dealer B and dealer C?

We can only be suckerred in by RRP prices if we even bother to read them.

At the end of the day the value of an item is determined by what the market (thats consumers) are prepared to pay for it not by some made up figure some marketing guy in the manufacturers office plucks out of thin air.

If an items market value is £100 then its worth £100 no amount of pleading that it is really worth £200 will alter it's market value, therefore shop around compare actual prices not RRP's and you should be ok, regardless of the wording the retailer uses.