Retailers, be aware – misleading pricing

The Commerce Commission has recently published an open letter to retailers highlighting pricing practices that may breach the law and offering guidance on how to avoid these.

The biggest complaint area received by the Commerce Commission last year concerned pricing, and currently this is a particular area of focus for compliance education and enforcement work.

The letter includes a one page ‘Price Promotion Tips’ document that outlines the top things retailers should consider when offering price promotions, such as:

  • Ensuring that discounts are taken off the normal selling price
  • Not using fine print to hide important information
  • Not exaggerating savings
  • Not using words like “lowest” and “cheapest” prices.

 

Read the open letter from the Commerce Commission here: Misleading-pricing-An-open-letter-to-New-Zealand-retailers-11-May-2017

It also includes information on the risks of breaching the law and how to stay within it.

If you have any questions around pricing please get in touch with your Moore Stephens Markhams advisor.

Serious about your success?