The Tile Association is encouraging its members to be aware of the guidelines issued by the Committee on Advertising Practice (CAP) when considering pricing strategies.
This applies particularly to the issue of defining Recommended Retail Prices (RRPs) when promoting discount sales campaigns. It is believed that certain companies within our sector are making claims such “50 per cent off RRP” when in fact the RRPs have on occasion not been properly established.
The full guidance on these issues is available on the CAP website at www.cap.org.uk, but a key consideration is that “price comparisons are likely to mislead if the RRP differs significantly from the price at which the product or service is generally sold”. Therefore, even if a quoted RRP is the price set by the manufacturer of the product, it has to be established that the product has actually been sold in the market at that price, in order to be able to refer to it legitimately in a price discounting campaign.
Retailers are advised that making incorrect claims concerning RRPs can lead to a referral to the Advertising Standards Authority. In the past the ASA has upheld complaints against retailers who have claimed that a certain product has been “generally sold” at a certain price, but who have been subsequently unable to prove that anyone bought the product at that price. The TTA therefore advises its members to seek appropriate advice on what constitutes a genuine RRP, before making any discount claims.