What are the legalities of this?

unholyangel

arcon5 wrote: »

Lying about closing down when you're not would most certainly be an offense of some sort... i'm one of the major chains got in to trouble for misleading signs of similar nature in the not so distance past - can't remember which though.

But we don't know the full circumstances so it's hard to determine if it's deliberate or what

Furniture store by any chance?

Anyway, its covered under CPRs/consumer protection from unfair trading under "banned practices":

(15) Claiming that the trader is about to cease trading
or move premises when he is not.

A trader runs a clothes shop. He puts up a sign in the shop
window stating: ‘Closing down sale’. Unless the shop was
genuinely closing down this would breach the CPRs

And on banned practices it says:

6.1 Schedule 1 to the CPRs lists 31 commercial practices
which are considered unfair in all circumstances and which
are prohibited.8
There is no need to consider the likely effect
on consumers. The text that follows lists these banned
practices and provides some illustrative examples in italicised
text. Breaches of these provisions may also breach the other
prohibitions in the CPRs.

http://www.oft.gov.uk/shared_oft/business_leaflets/cpregs/oft1008.pdf


of course that is assuming it was just an advertising ploy and not a genuine change in circumstances.

Money-Saving-King

tonycottee wrote: »

Con
verb
1.
persuade (someone) to do or believe something by lying to them.

noun
1.
an instance of deceiving or tricking someone.


Surely that by lying that you're closing down when your not, constitutes as a con?

Do you have to buy if a shop has a closing down sale? Do you sign a contract to purchase when you walk in? do they hold a gun at your head if you don't buy.

Buying is a choice. You look at a price and decided if you are happy with it, no ones forcing you to do anything.

CKhalvashi

kevano22 wrote: »

Apologies for posting here. I genuinely thought more people would be interested to know that they're being conned into thinking they're getting a good deal because of a closing down sale, which doesn't exist.

We sold a perfectly healthy company in 2008, that finally closed down after going through about 3 sets of bad management in late 2009, and set up under a different name (same directors, same shareholders), before going broke again 18 months ago, at which point we bought it back.

The company is now making a healthy profit, however there were many genuine reasons for it continually closing down/starting again.

CK

Money-Saving-King

CKhalvashi wrote: »

We sold a perfectly healthy company in 2008, that finally closed down after going through about 3 sets of bad management in late 2009, and set up under a different name (same directors, same shareholders), before going broke again 18 months ago, at which point we bought it back.

Could be the same here.

Having being in that position what would you have thought if people on a mainstream forum like this started a thread questioning what you were doing by starting a thread with a title " What are the legalities of this?"?

CKhalvashi

Money-Saving-King wrote: »

Could be the same here.

Having being in that position what would you have thought if people on a mainstream forum like this started a thread questioning what you were doing by starting a thread with a title " What are the legalities of this?"?

I'd ask the forum team to respond on my behalf regarding several sets of previous management, but wouldn't go into the financials of it.

I feel it's a perfectly reasonable question for a consumer to ask, and inevitably, it did damage the long-term prospects of the business.

We sold as a going concern, then bought back from the administrators the office, phone number and vehicles used (in this case a taxi firm) for £100, plus agreed to guarantee the debt and pay the insolvency costs. Maybe not relevant to the question, but to give an idea of how an insolvency buyout works.

CK

tonycottee

Money-Saving-King wrote: »

Do you have to buy if a shop has a closing down sale? Do you sign a contract to purchase when you walk in? do they hold a gun at your head if you don't buy.

Buying is a choice. You look at a price and decided if you are happy with it, no ones forcing you to do anything.

So what you're saying is deception is fine when it comes to selling?

Money-Saving-King

tonycottee wrote: »

So what you're saying is deception is fine when it comes to selling?

I'm saying what does it matter what signs say. Everytime I want to buy something in a shop a simple process is followed, I use my phone and look for the same product on eBay & Amazon, if it's the same or cheaper in the shop I buy it. To be honest I don't think I've paid much attention to signs/sale signs etc for years.

If a shop has a closing down sale sign at the front and someone goes in and buys a Bic biro for £100 reduced from £5000 then moans about the price they paid I really don't have much sympathy for them!

kevano22

Finally people see what I am saying. Thanks all, I feel less like I am going crazy here.

Closing down and starting up again over 18 months I wouldn't bat an eyelid.

Closing down for a week at a time, after advertising for months is wrong, misleading and very deceptive.

Thanks for the replies all. Interesting debate.

Takeaway_Addict

kevano22 wrote: »

Finally people see what I am saying. Thanks all, I feel less like I am going crazy here.

Closing down and starting up again over 18 months I wouldn't bat an eyelid.

Closing down for a week at a time, after advertising for months is wrong, misleading and very deceptive.

Thanks for the replies all. Interesting debate.

Did you get any further with this?

ThumbRemote

Money-Saving-King wrote: »

I'm saying what does it matter what signs say.

So you do think it's OK for retailers to lie then?