Shop discounts to be 'put under spotlight' as watchdog warns against 'concerning' business practices

The CCPC said its engagement phase with businesses is "now over," adding that sales pricing is now an "engagement priority" 

According to the CCPC, a number of traders have not yet changed their practices around price reduction announcements following the introduction of the new rules last year.

A consumer watchdog has warned businesses that they will be watching this year to ensure sales discounts are genuine and shoppers are not misled following new rules implemented last year.

The Competition and Consumer Protection Commission (CCPC) said they will not allow consumers to be mistreated and made to believe they're getting a better deal than they are, with the watchdog outlining clear-cut requirements to businesses for the use of discounts.

“A discount must be a real discount," said Mr Kevin O'Brien of the CCPC. "Most announcements such as "sales" prices, "special offers" or "Black Friday offers" that create the impression of a price reduction fall within the scope of the rules." 

By law, when a business makes price reduction announcements, they must display the lowest price a product was on sale for in the previous 30 days, and base the discount on this price alone.

"Concerning practices"

Responsible for market surveillance and enforcing consumer protection laws, the CCPC undertook an analysis of pricing data of businesses late last year and into early 2023, with Mr O'Brien saying the analysis showed "a number of concerning pricing practices."

According to the CCPC, a number of traders have not yet changed their practices around price reduction announcements following the introduction of the new rules last year.

Some of the issues the CCPC found included:

• not using the lowest price applied to the product in the previous 30 days before the price of the product was reduced

• indicating a previous selling/prior price in a price reduction advertisement which never applied to the product in question

• indicating a recommended retail price only and presenting this price as having previously applied to the product in question.

Engagement phase 'now over'

"Up until now, the CCPC has been engaging with businesses to inform them of their new obligations," Mr O'Brien added. 

"Businesses have been given ample opportunity to get their house in order. This engagement phase is now over and sales pricing is now an enforcement priority for the CCPC.”

"If we find any offers which mislead consumers, we will be engaging with businesses and taking enforcement action where necessary.”