A warning for businesses who deal with consumers
The Office of Fair Trading (OFT) has published its annual plan in which it describes the areas in which it will focus its enforcement action in 2012/2013.
It is focussing its enforcement actions on areas where "there are high levels of consumer detriment" and has stated that it will "maximise the deterrent effect" of its actions against businesses. The OFT has provided a list of those areas where it currently feels that there are high levels of consumer detriment.
Focus Areas
The annual plan is subject to consultation so the focus areas may change (we will update you if they do). Some of the proposed focus areas include:
Online Selling
The OFT is to promote compliance amongst online retailers in order to improve consumer confidence in shopping online. The OFT has stated that it "will take enforcement action where there is a specific threat to online consumer confidence".
It is therefore vitally important to ensure that your online store fully complies with all consumer and e-commerce rules and regulations.
Bait pricing and reference pricing
The OFT will take step by step on practices whereby the retailer only has a small proportion of stock available at an advertised offer price (bait pricing) or misleadingly advertises offers such as "was £100 now £60" (reference pricing).
Complex pricing
The OFT is concerned that some retailers are creating complex pricing structures which makes it difficult for the consumer to compare prices. The OFT will therefore focus on these pricing structures.
We would therefore strongly advise retailers to ensure that they comply with all consumer laws, particularly in the above areas, or risk potential enforcement action which could result in fines or even, in the most extreme cases, imprisonment - remember the Lapland New Forest attraction saga a few years ago which led to the imprisonment of its directors.
If you would like any further information on this or about how we can help you comply with consumer laws in general, please contact: