Price marking of Goods for Retail Sale
From 1 September 1991, new requirements relating to the price marking of virtually all goods offered for retail sale came into force.
Selling price
Essentially, the law now requires that the selling price of all goods offered for retail sale must be indicated in writing.
Goods displayed for sale
For goods on display for sale (e.g. items on a shelf in a shop, or in a shop window), the selling price can be shown in any of the following ways:-
- Marked on the goods themselves (ie each item price marked individually)
- On a ticket or notice near to them (e.g. on a shelf label)
- Grouped together with other prices in a price list in close proximity to the goods to which it relates.
Note that retailers are not required to mark each item individually, as long as the selling prices are indicated using one of the other methods.
The price must be clearly legible to a prospective purchaser and clearly identifiable as referring to the goods in question.
Goods not on display
On retail premises, the written indication of the price of goods not on display which are brought to the counter at the request of the customer must be either marked on the goods or shown to the customer by means of a catalogue, price list , VDU or other electronic visual display.
Value Added Tax
Where sales from the premises are mainly to private customers, prices must be shown inclusive of VAT.
Only where sales are mainly to business customers can the amount of VAT payable be shown separately and with equal prominence to the VAT exclusive price for each item. Alternatively, VAT exclusive prices may be shown in conjunction with prominent general notices that VAT is payable at the current, specified rate (e.g. "All prices are subject to VAT @ 17.5%).
If the rate of VAT changes, general notes may be used for up to 14 days after the change takes effect, indicating that prices will be adjusted to take account of the change provided that the goods to which the notices refer are clearly identifiable.
Ancillary Goods or Services
Where the consumer has to pay for non-optional ancillary goods or services in order to obtain the goods (e.g. delivery of a car to the dealer’s premises, or postage and packing for mail order goods), their price must either be included in the price of the goods, or shown with equal prominence to it.
Price reductions
If you are proposing to sell goods at less than the selling price which is indicated for the goods, you may either:-
- indicate the reduced price on the goods or on the notice or price list; or
- prominently display a general notice which shows that the goods are for sale at a price reduced by reference to a fraction or percentage (e.g. "15% off marked price for all goods", "All items on this shelf at ½ marked price"). Such a notice must be unambiguous and be easily identifiable as relating to the goods in question. You should then indicate (either orally or in writing) the reduced price to prospective purchasers before they purchase the goods.
Advertisements
Advertisements in which a price is stated are, generally, subject to the new law. Therefore, the price must be legible, clearly identifiable with the goods in question and must comply with the requirements relating to VAT and non-optional extra charges.
Advertisements placed by manufacturers or other suppliers who are not themselves selling directly to consumers, and which give a general indication of their recommended retail prices, are not affected by the new law.
Where goods are sold only in direct response to advertisements (e.g. mail order), those advertisements must state the selling price and must comply with the other requirements of the new law.
Special provisions for jewellery and precious metals
If articles of jewellery or precious metal are displayed in a shop window, then the price need not be shown if it exceeds £2500. However, the price must still be made available to the prospective purchaser e.g. by showing him/her a price list or visual display within the shop.
If articles of precious metal are sold at a price set by reference to their weight and the current market price of the precious metal then contain then there must be a written indication of:-
- the weight, type and standards of fineness of each precious metal contained in them; and
- the element of the price which is not referable to weight; and
- a legible notice stating the price per unit weight for the type and standard of fineness of each precious metal contained in the displayed item.
The following sales are not covered by these new requirements:-
- goods sold in the course of the provision of a service;
- antiques and works of art;
- auctions;
- trade-to-trade sales;
- sales between two private consumers;
- food sold and consumed on the premises of catering establishments (which is subject to its own separate pricemarking controls).
This leaflet has been prepared for the guidance of traders. It is necessarily worded in a general way and cannot cover every circumstance. It is not an authoritative interpretation of the law.
For further advice contact:- Warrington Borough Council, Community Services Directorate, Palmyra House, Palmyra Sq Nth, Warrington, WA1 1JN
Tel No: 01925 442678 Fax No; 01925 442655
