Jersey businesses reminded of RRP rules

Thursday 11 January 2018

Trading Standards are reminding business of Recommended Retail Price (RRP) rules after the Chartered Trading Standards Institute recently published new guidance on pricing practices.

Under the new guidance, retailers can no longer sell goods at full price for one month and discount for the next five months, putting an end to the '28 days within six months’ rule, which is no longer considered to be fair.

The new guidance suggests the goods should not be on sale for longer than they were originally at the higher price. In addition, traders should have sold a large number of units at the higher price to be able to make a genuine price comparison.

Businesses are also urged to check with their suppliers and manufacturers if the RPP they are using is a genuine selling price. If they use an RRP that is not verified, there is a risk that it isn't genuine and businesses could be misleading their customers.

The guidance also includes rules retailers must follow when showing an RRP: 

• 'RRP' are the initials used in the UK so you should avoid using other abbreviations.
• An RRP must not be false and must represent a genuine selling price.
• You can't recommend your own RRP or influence the price at which your third party supplier or manufacturer sets the RRP.
• You can't create an RRP to present the appearance of a discount.
• If you choose to show a price comparison to RRP you must be clear about this being a UK RRP or a Jersey RRP.

Traders are also warned that all extra charges, such as postage, packaging, delivery charges and administrative fees that must be paid for a service, should be included in the up-front price, if they are compulsory. If compulsory charges vary, customers should be informed at the start.