UK Government Moves to Ban “Phoney” Discount Claims Under 2024 Consumer Act

Prime Minister Andy Burnham has pledged to end “phoney bargains”, insisting that a product advertised as half price must truly be half price. The government plans a consultation this autumn on whether invented discounts, false reference prices and misleading recommended retail prices (RRPs) should be added to the list of 32 prohibited practices in the Digital Markets, Competition and Consumers Act 2024. If adopted, the change would automatically deem such tactics unfair, removing the need to prove consumer deception in each case.

The Guardian

The 2024 Act already bans “unfair commercial practices”, but regulators such as the Competition and Markets Authority (CMA) and Trading Standards must meet high legal thresholds to act. A CMA investigation can take three to six months and requires evidence that a misleading price altered a shopper’s decision. Sue Davies, head of consumer-rights policy at Which?, notes that adding specific discount practices to the banned list would simplify enforcement and reduce the evidentiary burden.

The Guardian

Hafsah Nawaz, a competition-law lawyer at A&O Shearman, stresses that the law does not dictate pricing levels but aims to prevent deceptive presentation of discounts. Geraint Lloyd-Taylor, a consumer-regulation lawyer at Lewis Silkin, warns that retailers must sell at the higher reference price for a reasonable period and in the same outlet, otherwise the discount is not genuine. Which?’s research of 175 Black Friday offers found most prices were equal to or lower than usual, yet the group says “dodgy deals” persist because of unclear legal boundaries.

The Guardian

A government spokesperson told Guardian Money that existing rules are “difficult to prove and uphold”, prompting the proposed amendment to make it easier to tackle misleading pricing tactics. Which? called for swift implementation and tough enforcement, including fines, to protect shoppers from “sneaky pricing tactics”.

The Guardian

• “It just makes it more straightforward for them to be able to pursue a case rather than having to go through more complicated legal arguments and provide a lot of evidence in order to make the case that something is misleading,” — Davies. Photograph

The Guardian

• “You shouldn’t be talking about a price that was applied three prices ago,” — Lloyd-Taylor. Everything

The Guardian