Deal or no deal? How to know if the retail price is right
The government is planning to crack down on misleading discounts in shops and online, with Andy Burnham pledging to end "phoney bargains" such as fake "was" prices and endless closing-down sales. A consultation this autumn will consider whether false discount claims, invented reference prices and misleading recommended retail prices (RRPs) should be explicitly added to the list of banned practices under the Digital Markets, Competition and Consumers Act 2024, making enforcement easier for regulators. This matters because current rules, while technically covering such practices as "unfair commercial practices", require a lengthy and costly process to prove that misleading pricing actually changed a shopper's decision.
The Competition and Markets Authority can already fine retailers up to 10% of global turnover and order refunds without going to court, but investigations typically take three to six months due to the legal thresholds involved. The government wants to add dodgy discounting to the 32 practices already automatically banned, removing the need to prove consumer harm case by case. Which? research found that of 175 Black Friday offers from eight retailers examined last year, most items were the same price or cheaper at other times of year. Historically, guidance suggested items should be sold at a higher price for at least 28 consecutive days within the prior six months before that price could be used as a discount reference point, though lawyers note the 2024 Act instead focuses on retailers' intent when setting prices.
- Government plans autumn consultation to ban fake discount tactics outright
- CMA can already fine up to 10% of turnover, but proving harm is slow
- Which? found most "Black Friday deals" were no cheaper than usual
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The consumer protection watchdog and the government are the main actors here: the Competition and Markets Authority (CMA) already has powers to fine retailers and order refunds when pricing is found to be misleading, while ministers, including Andy Burnham, are looking at ways to make those powers quicker and easier to use. The starting point is long-standing shopper frustration with discounts that may not be genuine, such as items marked down from an inflated "was" price or shops running seemingly permanent "closing down" sales.
At the moment, proving that a discount was misleading can be a slow and complicated legal process, because regulators often have to show that the pricing actually influenced a customer's decision to buy. A new law, the Digital Markets, Competition and Consumers Act 2024, already lists a set of practices that are automatically treated as unfair, and the question now is whether dodgy discounting should be added to that list, making it simpler to act against.
This matters to anyone who shops in sales periods like Black Friday, since research has suggested that many "discounted" items are not actually cheaper than at other times of year. The debate touches on how prices are set and advertised, including the use of recommended retail prices, and how much scrutiny retailers face when they claim shoppers are getting a bargain.