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UK retail faces crackdown on 'fake' discounts and subscription traps
Prime Minister Andy Burnham launches consultation on misleading pricing; BRC pushes back. New subscription rules to save consumers £400m a year.
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Retailers face stricter rules on promotional pricing after Prime Minister Andy Burnham announced a crackdown on misleading discounts and subscription traps. The government plans to ban artificially inflated previous prices, invented discounts, and misleading recommended retail prices under the Digital Markets, Competition and Consumers Act.
A consultation will launch this autumn. Changes would come through secondary legislation, Burnham said. The aim is to stop retailers from raising prices before marking them down or advertising reductions that give shoppers a false impression of savings.
Burnham said consumers should be able to trust that a half-price promotion represents a genuine saving. The government estimates the initial crackdown could save consumers around £400m a year.
The British Retail Consortium pushed back. BRC director of business and regulation Tom Ironside said major retailers already comply with promotional rules and ensure discounts deliver real savings.