The challenges of defining a “misleading” discount
As part of his “everyday fixes” announced this week, Andy Burnham revealed that the government would be cracking down on misleading discounts, with a consultation launched to look at whether fake “was” prices, invented discounts, and misleading recommended retail prices (RRPs) should be added to the list of banned practices under the DMCCA consumer protection law.
Since last April, the DMCCA has beefed up the power of the Competition and Markets Authority (CMA), allowing it to fine companies up to a maximum of 10% of global turnover. They have not been shy of using those new teeth, recently fining Marks Electrical £720,000 and ordering it to make refunds of around £600,000 for automatically opting-in customers to recycling services. Cases are ongoing against Wayfair, Appliances Direct, and a number of other businesses.
Already have an account? Sign in here