Price Claims and VAT

17 Price Claims and VAT

Advertisements indicating price comparisons or reductions must comply with all relevant requirements of the Consumer Protection Act 1987 (Part 3) and Regulations made under it, including the Code of Practice for Traders on Price Indications 2005, and the Price Marking Order 2004. In addition, all prices quoted in advertisements must include VAT, except for business-to-business advertisements, where it must be made clear that prices are exclusive of VAT.

Actual and comparative prices quoted must be accurate at the time of broadcast and must not mislead. Claims of ‘lowest prices’ must be supported by evidence from the retailer that none of his competitors sells the advertised product or service at a lower price. Claims of ‘unbeatable prices’ or ‘you cannot buy cheaper’ must be supported by evidence from the retailer that his prices are as low as his competitors.