The Office of Fair Trading has warned retailers they could face court action over misleading price promotions.

The competition watchdog cited so-called drip pricing, time-limited offers and ‘baiting’ sales, where only a small amount of stock on promotion is available, as key areas of concern.

The warning comes after the OFT in August outlined new standards for retailers over promotions. Yesterday the body published a new study into price-based advertising.

“Pricing practices used in a transparent and fair manner can provide consumers with a helpful shortcut to assess whether a particular offer is a good or bad deal,” said OFT chief executive John Fingleton.

“However, our research has highlighted how certain pricing tactics can be used in a misleading way.

“We urge all firms to review their pricing practices and to get their houses in order where necessary.”

But the British Retail Consortium said the body “those who deliberately set out to mislead”.

“Customers aren't stupid,” said BRC regulation director Tom Ironside.

“They make sophisticated judgments about prices and value within stores, between stores and over time and have all the information they need to do that.

“[Retailers] want satisfied customers who come back again and again. They would have nothing to gain from attempts to mislead and any extra legislation or over enforcement on this issue would therefore be pointless.”

Read more

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Raw deal? OFT cracks down on promotions
(31 August 2010)