questionable sales tactic

mymedi

Hi everyone,
I've been wondering for a while whether the following sales tactic is actually legal? A company would either increase the base price for goods or just have it very high all the time, and then run a "sale" offering good (20-30%) discounts on this. However, the interesting bit is that even with the potentially great discount the price still works out to be higher than if you bought it elsewhere without any sale or promotion...?
While a company is obviously entitled to charge as much as it wants for things/services, the representation of a sale whereas there isn't one in reality seems highly misleading.
From what I know, many companies are actively engaging in this...
If anyone has any experience or knowledge of this (particularly from the legal point of view), it would be most appreciated!
Thanks!
Michael

unholyangel

There are certain guidelines they need to follow, like they cant have it at the high price in one store for 1 week then massively discount the price as its likely to mislead.

But generally, companies are free to set their own prices providing their pricing isnt misleading/likely to mislead.

bris

You mean like every major furniture store, or kitchen store, or carpet store, I could go on. It's a legal tactic thats been used for years so nothing illegal, just takes in the fools who don't know any better really think they are getting a bargain.

mymedi

bris wrote: »

You mean like every major furniture store, or kitchen store, or carpet store...

Exactly. But isn't this misleading the customer?
Or are there different levels of misleading...?

unholyangel

mymedi wrote: »

Exactly. But isn't this misleading the customer?
Or are there different levels of misleading...?

If its likely to cause customers to enter into an agreement they otherwise wouldnt have, it could be seen as an unfair practice.