TK Maxx "RRP"

Brightone

I think that by now we all know that TK Maxx have things specially made for them by manufacturers and retailers which they otherwise would not make. For example, Le Crueset make special versions of their products in colours that they don't sell in their own store, and Versace supply clothes that are made only for TK Maxx and were never sold in their own retail stores.

But here is my question. How can TK Maxx show a RRP/SRP (or whatever they call it) when it's never been sold anywhere else? Surely the seller never set a RRP if they never had it on sale in their own stores? 

DullGreyGuy

A long standing question and one of multiple investigations by the likes of the BBC and such. Something that Trading Standards seem to be comfortable with though. 

Not only TK Maxx though, plenty of "discount villages" have made for discount products that they somehow have a discounted from RRP price on. Some are things specially designed for discount which is okish but others are poorer quality clones of retail store items and personally find that much more dodgy.

jon81uk

Brightone said:

I think that by now we all know that TK Maxx have things specially made for them by manufacturers and retailers which they otherwise would not make. For example, Le Crueset make special versions of their products in colours that they don't sell in their own store, and Versace supply clothes that are made only for TK Maxx and were never sold in their own retail stores.

But here is my question. How can TK Maxx show a RRP/SRP (or whatever they call it) when it's never been sold anywhere else? Surely the seller never set a RRP if they never had it on sale in their own stores? 

RRP stands for recommended retail price, so if Le Crueset recommend selling it at £100 then that is RRP irrespective of anything else. Whether the item is worth that price is another question.

the_lunatic_is_in_my_head

There used to be a Pricing Practices Guide from the Office of Fair Trading where making a comparison against an RRP if the product wasn't typically sold at that price was prohibited.

Once the Consumer Protection From Unfair Trading Regulations came into force these replaced the policy IIRC. 

The Unfair Trading Regs are non-specific giving the advantage of being broad and offering consumers far more protection. The down side is they are non-specific meaning traders can get away with actions where there hasn't been any enforcement from authoritative bodies or guidance from the CMA. 

Making up RRPs for a product only sold by one company and then always selling it at a lower price whist using the RRP as a comparison would highly likely be viewed as a breach of the regulations. 

Other tactics such as using old prices, those that no longer reflect the usual price, one off spikes and a whole host of other situations are, according to the CMA, also likely to be misleading. 

They get away with it partly because enforcement is lacking and partly because all this nonsense keeps people buying endless tat and the government's job is to find the balance between consumer confidence and a healthy economy.

Just to add:

https://www.businesscompanion.info/sites/default/files/Guidance-for-Traders-on-Pricing-Practices-Apr-2018.pdf

Recommended retail price (RRP) A recommended retail price (RRP) is a price that a manufacturer or supplier has independently recommended. The use of RRPs is contentious and there have been calls to prohibit the practice completely. Traders must take extra care when using RRPs to ensure that they do not mislead consumers.

When making comparisons to an RRP, you should clearly and prominently tell consumers that the higher price is an RRP, rather than a price that you have charged. The initials RRP have historically been used in the UK and their meaning is likely to be understood by most consumers. You should avoid using other abbreviations unless you can be sure that consumers will have a clear understanding of their meaning in the context of the sale.

An RRP must not be false; it must not be created purely in order to present the appearance of a discount. An RRP must represent a genuine selling price. You should not recommend your own RRP or influence the price at which your third party supplier or manufacturer sets the RRP.

Traders using RRPs should consider obtaining substantiation from their suppliers or manufacturers that the RRP represents a genuine selling price. The use of RRPs as a reference price without such substantiation leaves the business open to the risk that the RRP is not genuine and may be considered misleading.

Further advice from the ASA:

https://www.asa.org.uk/advice-online/recommended-retail-prices-rrp.html#.WEFfGH0aySV