Bogus pricing at centre of crackdown

Supermarkets and travel companies have found themselves at the centre of a crackdown over bogus discount pricing after a number of complaints were made by consumers.

Many consumers have complained that whilst some supermarkets and travel firms have been offering huge discounts on purchases it turns out that the discount is a scam because it was only made available because the cost of the item or service was hiked up in the first place, making the lower price seem like a big discount.

The investigation is being carried out by the Office of Fair Trading, and the watchdog will focus on potential bogus offers that are being made available both online and via the High Street.

They will be focussing in particular on areas where there is a big difference between the original price and the discounted one.

However, many concerns have already been expressed over supermarkets inflating prices on products for a short period and then reducing them and claiming that they are offering a substantial discount.

An official from the OFT said: ‘These studies will ensure that we keep up to date with the latest developments and, in particular, on how new pricing and advertising practices are emerging and evolving online. It is very important that the OFT’s approach to potentially misleading practices remains well informed by a sound evidence base, so we effectively protect consumers while allowing firms to compete freely.’

A spokesperson for consumer campaign group Which? added: ‘Anyone who’s bought a budget flight or gone for an insurance quote online will have come across drip-pricing. The advertised price soon balloons as you add “optional” extras but it’s hard to see how some of these charges are avoidable. If these companies are so confident that their prices are the cheapest, why not just advertise the likely total amount in the first place?’

Tags: price crackdown, whilst, sound, Pricing, bogus discounts, office of fair trading