Partly Cloudy

Partly Cloudy

max temp: 16°C

min temp: 9°C

ESTD 1874 Search

Retail: OFT ends investigation after furniture and carpet firms agree to change pricing practices

10:01 21 March 2014

Five carpet and furniture retailers have agreed to amend their pricing practrices, following an investigation by the Office of Fair Trading.

Five carpet and furniture retailers have agreed to amend their pricing practrices, following an investigation by the Office of Fair Trading.

Five furniture and carpet retailers have changed their pricing practices following an investigation into the way discounts are advertised.

The Office of Fair Trading (OFT) said today that it has closed its investigation after SCS, Carpetright, Dreams, Furniture Village and Homestyle’s trading brands Harveys and Bensons for Beds confirmed their commitment to using genuine prices.

The inquiry looked into the reference prices used by retailers to advertise a bargain to shoppers, such as “Was £800, Now Half Price £400”.

The OFT said the retailers confirmed their commitment to using genuine reference prices and, without any admission of liability, made changes to their reference pricing practices.

The regulator did not give specific examples but said the higher price was unlikely to be genuine or fair if a product was only available to buy at a higher price in a limited number of stores, the discounted price was used for significantly longer than the higher price or if relatively low volumes of a product were sold at the higher price.

OFT director Gaucho Rasmussen said: “Retailers advertise bargains and discounts by referring to a previous or future higher price.

“It’s a powerful marketing tool which, when used properly, provides a helpful and easy way to demonstrate to shoppers the value of discounts and savings.”

The Competition and Markets Authority (CMA), which succeeds the OFT next month, has pledged to continue to monitor pricing practices within the sector to check whether businesses are complying with their legal obligations.

CMA chief executive Alex Chisholm said: “Companies are advised to satisfy themselves that their practices are in line with the law because failure to do so could risk enforcement action.”

Carpetright chairman Lord Harris said: “We are pleased the OFT has publicly welcomed Carpetright’s commitment to open and transparent pricing.”

Search hundreds of local jobs at Jobs24

1 comment

  • Devastated by this decision, had these companies been smaller family firms they would have been prosecuted and fined. The OFT has already stated what they were doing was illegal yet they get away with it. Whilst blatantly flouting the law they have caused many smaller family firms to close down due to their misleading pricing structures which smaller companies cannot compete even if they wanted to. It is a sad day when independent traders are let down by government bodies in such a manner, these companies should fined pro-rata to the damage they have caused smaller traders in the past which if implemented would force them out of business to the overall benefit of all consumers.

    Report this comment

    Peter

    Friday, March 21, 2014

The East of England Co-op has put in a planning application to demolish the building as part of a regeneration project.

The East of England Co-op has announced plans to demolish an unused building in Ipswich which will pave the way for more regeneration.

From left, apprentices Bethany Brame, Lydia Lloyd-Potts and  Josephine Brady, Greene King chief executive Rooney Anand, Robert Halfon MP and Jo Churchill MP.

Skills minister Robert Halfon MP has praised the commitment of Bury St Edmunds-based pubs and brewing group Greene King to apprenticeships.

Greenpeace has published a list of the UK's top 100 recipients of European Union farming subsidies.

A number of East Anglian estates and farm businesses are among those receiving hundreds of thousands of pounds under the European Union’s Common Agri-cultural Policy (CAP), according to analysis by environmental group Greenpeace.

Alton Towers in Staffordshire, whose owner, Merlin Entertainments, says it has

Alton Towers owner Merlin Entertainments said today it had “learned every lesson” from last year’s Smiler rollercoaster crash as it revealed that visitor numbers are still being affected.

The Coderus team at Innovation Martlesham

Two technology businesses based at BT’s Adastral Park complex at Martlesham Heath have teamed up to create an innovative security system.

HOT JOBS

Show Job Lists

Most read

Most commented

Topic pages

Streetlife

Newsletter Sign Up

Sign up to the following newsletters:

MyDate24 MyPhotos24