Can retailers over label products wih higher prices?

halibut2209

Valli wrote: »

isn't about WHAT?

It isn't about whether a shop can refuse to sell to a customer for whatever reason. We know that.

It's about whether a shop is under an obligation to abide by the wholesalers instructions.

You say that a shop can charge higher than the pre-printed packaging. I have said I'd like to see proof of that and none has yet been forthcoming.

Valli

they are NOT wholesalers instructions though - they are recommended or suggested prices
(MRP or RRP)

A wholesaler has NO control over prices charged by retailers when they sell a product. The system doesn't work like that - that would be price fixing, which is illegal. A retailer can offer to sell goods in his shop at whatever price he chooses, whatever is printed on the packet. So a pre-priced packet will have those little letters RRP or MRP (or sometimes suggested selling price) in little letters somewhere. By the same token a retailer cannot say that he/she has REDUCED the price from a RRP - it is implied to make the customer think he/she is getting a bargain. However usually the retailer will have had 'consideration' when BUYING the - I'll use the example above - cigarettes - so that his profit margin won't be affected and he can sell them at the labeled price - but so will the wholesaler. The manufacturer would take the 'hit' - maybe they are trying to increase their volume of sales and/or have an advertising campaign going.

halibut2209 wrote: »

You say that a shop can charge higher than the pre-printed packaging. I have said I'd like to see proof of that and none has yet been forthcoming.

There isn't a law that says Retailers CAN charge higher; nor is there a law that says thay CANNOT. What retailers CANNOT do is deliberately misprice an item. So, for cigarettes, if the DUTY were to change the price could be altered to reflect this.

Flyboy152

wealdroam wrote: »

Sounds a bit like price fixing to me.

The wholesaler (or manufacturer) is not allowed to dictate prices to the retailer, and the "not to be sold individually" arrangement seems to be a quite similar trade restriction.

No, it is a contractural arrangement between the wholesaler/manufacturer to keep the product whole. It is not price fixing, because the supplier is not insisting that the retailer sells at a specific price.

Flyboy152

Valli wrote: »

Not that complicated...

price marked on item

customer selects item

customer takes item to till and (AT THIS POINT THE LAW COMES INTO PLAY)
offers to pay the marked price

the retailer can EITHER accept the customer's offer to pay the marked price OR say (for example) 'there has been a mistake and I'm not prepared to sell this item at that price'

It's not a complicated rule - it's the law

A retailer doesn't get into trouble unless he/she has deliberately set out to mislead. For example, stating that there has been a reduction when there hasn't.

The law also comes into to play if the seller fails to mention the mistake at the time the transaction is concluded.

Flyboy152

halibut2209 wrote: »

Actually, the whole tax thing is exactly the reason I brought up the issue of cigarettes. The retailer pays the tax when they buy from the wholesaler. So if there's a tax increase of, say 50p, then the retailer gets that 50p, not the government.

You seem knowledgeable in this area. May I ask how? (And I mean that in a nice way!)

halibut2209 wrote: »

That's where I disagree.

As a retailer, you buy something, pay your tax, then sell at the accepted profit margin.

When a tax increase occurs, you've already paid the tax, so you sell at the "accepted profit margin" price. Then when you buy your next load, you buy at the higher price, then sell at the higher price.

The whole point of being a retailer is that YOU pay up front and then get the profit back at a later date. That's what business is.

The retailer reclaims any VAT paid to the wholesaler at the rate it was paid. If the retailer sells the goods after a rate change, they must charge the amount at the new rate.

Flyboy152

mjm3346 wrote: »

Nothing illegal providing the individual items are marked with the legally required labels (Best before etc) and it is not just on the multipack outer.

Standard guidance to "small shops"

If you split multi-packs check that each
separate pack has the necessary

information on it

And this is how the manufacturer is able to insist that the retailer does not split the pack.

antrobus

billybargain66 wrote: »

Hi, I recently went into a local well known home and fashion store to buy a duvet cover. I found the one I wanted but noticed that the price had been over-labelled with a new higher price, leaving the older lower price on the cardboard of the product, can retailers do this? I thought they couldn't but cant find the info I need, anyone know? The retailer had done this to a number of items in the shop.

Many thanks.

My recollection is that it was once an offence to 'over-label' goods with a higher price. But that was in the late 1970s and part of the then Labour government's 'anti-inflation strategy', but I can't imagine that it's still the case.

antrobus

halibut2209 wrote: »

Actually, the whole tax thing is exactly the reason I brought up the issue of cigarettes. The retailer pays the tax when they buy from the wholesaler. So if there's a tax increase of, say 50p, then the retailer gets that 50p, not the government.

Flyboy152 wrote: »

The retailer reclaims any VAT paid to the wholesaler at the rate it was paid. If the retailer sells the goods after a rate change, they must charge the amount at the new rate.

Cigarette duty is different from VAT, it's payable when you take the cigarettes out of bond. It's a simple fact that retailers/wholesalers of such products often profit from duty rises, by taking higher than normal quantities out of bond before an anticipated tax rise.

catlad

i went into a newsagents once and he crossd out the 89p for a bottle of coke and put a pound on it

AWessen

Hi all.

Sorry to carry this thread on.

I purchased a nice coat for my son from Zara for xmas this year - 2012.

When wrapping, I checked for prices and found the price of £99.00 had been stuck on the cardboard garment label. I thought I would peel this off before wrapping.

To my surprise, the label covered up a price of [FONT=&quot]€[/FONT]89.99 - this is a big difference in price.

I contacted the store at Zara regarding my discovery and the Manager suggested I fly to Madrid to save the money.

Apparently all Zara goods arrive labelled with prices in euros and are scanned and repriced in store, normally approximately 25% more than the euro price.

Talk about 'rip off Britain' again.

Why do these companies treat us as such blatant idiots.

Suffice to say - coat returned for refund - never going to shop there again and tell anyone I come across what they do.

Is what they are doing illegal - probably not.

But do you want to be ripped off as well??

Do they pay Corporation Tax - probable haven't ever made a profit ever in the UK.:eek: