Advice Needed - False Advertising at Currys

Laz123

stebiz wrote: »

No you have it wrong. They did not (and do not) have to sell at that price. No court could even force them to.

You are getting confused with Trading Standards taking them to court for mis pricing. Often a retailer would sell an item, at the mis price, so they weren't reported to Trading Standards. However over the years the more spineless TS has become, many no longer seem worried!!

Deary me. On your misguided assumption if you think about this logically then any retailer can price an item and refuse to sell it at that price, saying it was a mistake and the actual price is higher. This could be common practise.

I'll admit retail pricing legislation is complex, but it's certainly not as simplistic as 'an invitation to treat'.

Here's a sample:

The Consumer Protection Act
1. Section 20 of the Consumer Protection Act 1987 makes it a criminal offence for a person in the course of his business to give consumers a misleading price indication about goods, services, accommodation (including the sale of new homes) or facilities. It applies however you give the price indication - for example, in a TV or press advertisement, on a website, by email or text message, in a catalogue or leaflet, on notices, price tickets or shelf-edge marking in stores, or if you give it orally, for example on the telephone. The term "price indication" includes price comparisons as well as indications of a single price.
2. This Code of Practice is approved under section 25 of the Act, which gives the Secretary of State power to approve codes of practice to give practical guidance to traders. It is addressed to traders and sets out what is good practice to follow in giving price indications in a wide range of different circumstances, so as to avoid giving misleading price indications. The Code is not comprehensive. It cannot address every circumstance in which a misleading price may be given, particularly for new and innovative selling practices. It is guidance, rather than mandatory, although it may be taken into account in establishing whether an offence has been committed under the Act. You may, therefore, still give price indications which do not accord with this Code, provided they are not misleading. Equally, compliance with specific aspects of the Code will not, of itself, establish that a price indication is not misleading. Where an offence of giving a misleading price indication is alleged, a Court would have regard to all the relevant circumstances.
3. "Misleading" is defined in section 21 of the Act. The definition covers indications about any conditions attached to a price, e.g. additional charges that may be payable, about what you expect to happen to a price in future and what you say in price comparisons, as well as indications about the actual price the consumer will have to pay, for example about a price which is additionally subject to VAT. It applies in the same way to any indications you give about the way in which a price will be calculated and to any relevant omissions from an indication which makes a price misleading.
Price comparisons
4. If you want to make price comparisons, you should do so only if you can justify them. You should be able to show that any claims you make are accurate and valid. As a general rule, you should only compare like with like, but comparisons with prices which you can show are being charged for very similar goods, services, accommodation or facilities and have applied for a reasonable period are also unlikely to be misleading. Guidance on these matters is contained in this Code.
5
Enforcement
5. Enforcement of the Consumer Protection Act 1987 is the responsibility of officers of the local weights and measures authority - usually called Trading Standards Officers. Trading Standards Officers operate in accordance with the Home Authority principle (under which a specific Trading Standards Service acts as the Home Authority for a major retailer with multi-store outlets) and with the principles of consultation and co-operation that are set out in the Enforcement Concordat. Further information about the Home Authority principle and the Enforcement Concordat can be obtained from your local Trading Standards Service or your Home Authority. Details of the location of your local Trading Standards Services can be obtained at the main Trading Standards website – http://www.tradingstandards.gov.uk. In Northern Ireland enforcement is the responsibility of the Department of Enterprise, Trade and Investment.
6. If a Trading Standards Officer has reasonable grounds to suspect that you have given a misleading price indication, the Act gives the Officer power to require you to produce any records relating to your business and to seize and detain goods or records which the Officer has reasonable grounds for believing may be required as evidence in court proceedings. Be prepared to cooperate with Trading Standards Officers and respond to reasonable requests for information and assistance. It is in your interest to be able to demonstrate that any claims you have made are accurate and valid. The Act makes it an offence to obstruct a Trading Standards Officer intentionally or to fail (without good cause) to give any assistance or information the Officer may reasonably require to carry out his duties under the Act.
Court proceedings
7. If you are taken to court for giving a misleading price indication, the court can take into account whether or not you have followed this Code. If you have done as the Code advises, that will not be an absolute defence but it will tend to show that you have not committed an offence. Similarly if you have done something the Code advises against doing it may tend to show that the price indication was misleading. If you do something which is not covered by the Code, your price indication will need to be judged only against the terms of the general offence. The Act provides for a defence of due diligence, that is, that you have taken all reasonable steps to avoid committing the offence of giving a misleading price indication, but failure to follow the Code of Practice may make it difficult to show this. The Act also provides for specific defences (e.g. if a misleading price indication is given in a book, newspaper or magazine, film or broadcast programme, it is a defence for the publisher to show that the indication was not contained in an advertisement).
Regulations
8. The Act also provides power to make regulations about price indications and you should ensure that your price indications comply with any such regulations. There are specific regulations dealing with indications of exchange rates in Bureaux de Change1, with price indications where different prices are charged depending on the method of payment (e.g. by cash or credit card)2 and with the resale of tickets for admission to places of entertainment3. Your local Trading Standards Service or Home Authority will be able to advise you on these regulations.
Other legislation
9. This Code deals only with the requirements of Part III of the Consumer Protection Act 1987. In some areas there is other relevant legislation. For example, the way in which prices for goods sold by traders to consumers must be displayed is subject to regulations made under the Prices Act 1974 (for example, the Price Marking Order 20044) and price indications about credit terms must comply with the Consumer Credit Act 1974 and the regulations made under it. Those selling by distance contracts should also be aware of the requirements of the Consumer Protection (Distance Selling) Regulations 20005 and where traders make use of advertisements they should have regard to the relevant rules governing misleading advertising (further information on these is available from the Advertising Standards Association – www.asa.org.uk ).
Office of Fair Trading
445.356 Advertisement; untrue, deceptive, or misleading statement or representation; failure
or refusal to sell in manner or at price advertised; determination of deceptive or misleading advertising; intent not to sell; defective, blemished, or rejected goods,
merchandise, or commodities; seconds; identification.
Sec. 6. (1) A person shall not knowingly make, publish, disseminate, circulate, or place before the public
an advertisement which contains a statement or representation which is untrue, deceptive, or misleading.
(2) The failure to sell goods, merchandise, commodities, or services in the manner advertised, or the
refusal to sell at the price at which it was advertised, or in accordance with other terms and conditions of the advertisement creates a rebuttable presumption of an intent to violate this act.
(4) A person shall not make, publish, disseminate, circulate, or place before the public an advertisement with the intent, design, or purpose not to sell at the price stated in the advertisement, or otherwise communicated, or with intent not to sell the goods, merchandise, commodities, or service so advertised.

stebiz

Laz123 wrote: »

Deary me. On your misguided assumption if you think about this logically then any retailer can price an item and refuse to sell it at that price, saying it was a mistake and the actual price is higher. This could be common practise.

I'll admit retail pricing legislation is complex, but it's certainly not as simplistic as 'an invitation to treat'.

Here's a sample:

The Consumer Protection Act
1. Section 20 of the Consumer Protection Act 1987 makes it a criminal offence for a person in the course of his business to give consumers a misleading price indication about goods, services, accommodation (including the sale of new homes) or facilities. It applies however you give the price indication - for example, in a TV or press advertisement, on a website, by email or text message, in a catalogue or leaflet, on notices, price tickets or shelf-edge marking in stores, or if you give it orally, for example on the telephone. The term "price indication" includes price comparisons as well as indications of a single price.
2. This Code of Practice is approved under section 25 of the Act, which gives the Secretary of State power to approve codes of practice to give practical guidance to traders. It is addressed to traders and sets out what is good practice to follow in giving price indications in a wide range of different circumstances, so as to avoid giving misleading price indications. The Code is not comprehensive. It cannot address every circumstance in which a misleading price may be given, particularly for new and innovative selling practices. It is guidance, rather than mandatory, although it may be taken into account in establishing whether an offence has been committed under the Act. You may, therefore, still give price indications which do not accord with this Code, provided they are not misleading. Equally, compliance with specific aspects of the Code will not, of itself, establish that a price indication is not misleading. Where an offence of giving a misleading price indication is alleged, a Court would have regard to all the relevant circumstances.
3. "Misleading" is defined in section 21 of the Act. The definition covers indications about any conditions attached to a price, e.g. additional charges that may be payable, about what you expect to happen to a price in future and what you say in price comparisons, as well as indications about the actual price the consumer will have to pay, for example about a price which is additionally subject to VAT. It applies in the same way to any indications you give about the way in which a price will be calculated and to any relevant omissions from an indication which makes a price misleading.
Price comparisons
4. If you want to make price comparisons, you should do so only if you can justify them. You should be able to show that any claims you make are accurate and valid. As a general rule, you should only compare like with like, but comparisons with prices which you can show are being charged for very similar goods, services, accommodation or facilities and have applied for a reasonable period are also unlikely to be misleading. Guidance on these matters is contained in this Code.
5
Enforcement
5. Enforcement of the Consumer Protection Act 1987 is the responsibility of officers of the local weights and measures authority - usually called Trading Standards Officers. Trading Standards Officers operate in accordance with the Home Authority principle (under which a specific Trading Standards Service acts as the Home Authority for a major retailer with multi-store outlets) and with the principles of consultation and co-operation that are set out in the Enforcement Concordat. Further information about the Home Authority principle and the Enforcement Concordat can be obtained from your local Trading Standards Service or your Home Authority. Details of the location of your local Trading Standards Services can be obtained at the main Trading Standards website – http://www.tradingstandards.gov.uk. In Northern Ireland enforcement is the responsibility of the Department of Enterprise, Trade and Investment.
6. If a Trading Standards Officer has reasonable grounds to suspect that you have given a misleading price indication, the Act gives the Officer power to require you to produce any records relating to your business and to seize and detain goods or records which the Officer has reasonable grounds for believing may be required as evidence in court proceedings. Be prepared to cooperate with Trading Standards Officers and respond to reasonable requests for information and assistance. It is in your interest to be able to demonstrate that any claims you have made are accurate and valid. The Act makes it an offence to obstruct a Trading Standards Officer intentionally or to fail (without good cause) to give any assistance or information the Officer may reasonably require to carry out his duties under the Act.
Court proceedings
7. If you are taken to court for giving a misleading price indication, the court can take into account whether or not you have followed this Code. If you have done as the Code advises, that will not be an absolute defence but it will tend to show that you have not committed an offence. Similarly if you have done something the Code advises against doing it may tend to show that the price indication was misleading. If you do something which is not covered by the Code, your price indication will need to be judged only against the terms of the general offence. The Act provides for a defence of due diligence, that is, that you have taken all reasonable steps to avoid committing the offence of giving a misleading price indication, but failure to follow the Code of Practice may make it difficult to show this. The Act also provides for specific defences (e.g. if a misleading price indication is given in a book, newspaper or magazine, film or broadcast programme, it is a defence for the publisher to show that the indication was not contained in an advertisement).
Regulations
8. The Act also provides power to make regulations about price indications and you should ensure that your price indications comply with any such regulations. There are specific regulations dealing with indications of exchange rates in Bureaux de Change1, with price indications where different prices are charged depending on the method of payment (e.g. by cash or credit card)2 and with the resale of tickets for admission to places of entertainment3. Your local Trading Standards Service or Home Authority will be able to advise you on these regulations.
Other legislation
9. This Code deals only with the requirements of Part III of the Consumer Protection Act 1987. In some areas there is other relevant legislation. For example, the way in which prices for goods sold by traders to consumers must be displayed is subject to regulations made under the Prices Act 1974 (for example, the Price Marking Order 20044) and price indications about credit terms must comply with the Consumer Credit Act 1974 and the regulations made under it. Those selling by distance contracts should also be aware of the requirements of the Consumer Protection (Distance Selling) Regulations 20005 and where traders make use of advertisements they should have regard to the relevant rules governing misleading advertising (further information on these is available from the Advertising Standards Association – www.asa.org.uk ).
Office of Fair Trading
445.356 Advertisement; untrue, deceptive, or misleading statement or representation; failure
or refusal to sell in manner or at price advertised; determination of deceptive or misleading advertising; intent not to sell; defective, blemished, or rejected goods,
merchandise, or commodities; seconds; identification.
Sec. 6. (1) A person shall not knowingly make, publish, disseminate, circulate, or place before the public
an advertisement which contains a statement or representation which is untrue, deceptive, or misleading.
(2) The failure to sell goods, merchandise, commodities, or services in the manner advertised, or the
refusal to sell at the price at which it was advertised, or in accordance with other terms and conditions of the advertisement creates a rebuttable presumption of an intent to violate this act.
(4) A person shall not make, publish, disseminate, circulate, or place before the public an advertisement with the intent, design, or purpose not to sell at the price stated in the advertisement, or otherwise communicated, or with intent not to sell the goods, merchandise, commodities, or service so advertised.

Please show me anywhere in your 'cut n paste' document were it states that a retailer, in court will be forced to complete the contract.

Also please show me anywhere were it says that the responsibility 'doesn't' fall on Trading Standards, to take a store to court, and prove that the price was displayed, with the intent of misleading.

Thanks

stebiz

Laz123 wrote: »

Deary me. On your misguided assumption if you think about this logically then any retailer can price an item and refuse to sell it at that price, saying it was a mistake and the actual price is higher. This could be common practise.

Er ................. no. Because if it was done on a regular basis (showing their disregard for the law), then the job of Trading Standards is to step in. For this reason most 'intelligent' companies, try and stay within the law!

unholyangel

Actually trading standards probably wouldnt take action unless the item had never been available at that price and it wasnt an obvious pricing error.

Although you usually find in most "special offer" cases, in the T&C's, they will have a "we reserve the right to end this promotion without any notice" type clause.

somethingcorporate

Laz123 wrote: »

Sec. 6. (1) A person shall not knowingly make, publish, disseminate, circulate, or place before the public
an advertisement which contains a statement or representation which is untrue, deceptive, or misleading.

I've bolded and italics the important part of the sentence above.

Errors and omissions excepted!

woody01

Laz123 wrote: »

I'm sorry to contradict this misconception but I was in retail advertising for over two decades and a retailer had to sell an item at the advertised price by law. Somewhere down the line the law has changed.

If you were in retail advertising you would know that you are wrong.
The seller is not obligated to sell at all, regardless of price.