Sir, The OFT's new market report gives retailers further clarity about when certain pricing promotions are in breach of consumer protection law ('OFT opens first cases in crackdown on misleading pricing', The Grocer, 4 December).
Compliance with 'bait pricing' laws will not always be easy. Retailers must make a reasonable estimate of demand, manage the supply chain responsibly and make it clear to customers that stock is limited. If stocks run out, the OFT advises that retailers should withdraw or amend any ads. Where a retailer flagrantly runs promotions without enough stock, the OFT may act, but occasional miscalculations are unlikely to be penalised.
If the OFT outsources consumer protection to Trading Standards next year retailers may be well placed to seek clarification on this issue from their local officers.
Ashley Borthwick, commercial regulatory lawyer, TLT
Compliance with 'bait pricing' laws will not always be easy. Retailers must make a reasonable estimate of demand, manage the supply chain responsibly and make it clear to customers that stock is limited. If stocks run out, the OFT advises that retailers should withdraw or amend any ads. Where a retailer flagrantly runs promotions without enough stock, the OFT may act, but occasional miscalculations are unlikely to be penalised.
If the OFT outsources consumer protection to Trading Standards next year retailers may be well placed to seek clarification on this issue from their local officers.
Ashley Borthwick, commercial regulatory lawyer, TLT
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