Fair Trading Act

Are your discounts legal?

If you are publishing discounts, you need to make sure that you are complying with the Fair Trading Act.

Retailers can be guilty of misleading consumers (and subject to big fines) if they:

  • publish was/now pricing, but does not usually charge the “was” price;
  • inflate the price of goods to exaggerate the level of discount;
  • use an “RRP” for comparison purposes where the RRP is not genuinely the usual price;
  • sell products repeatedly or for extended periods at the promotional price while claiming it is a discounted price.

There are potentially big fines for getting this wrong, so it’s a good idea to keep an eye on your discounting policies to make sure they comply with the Fair Trading Act. The Commerce Commission has some helpful information on this, so check it out here.

Also, Retail NZ’s guide for the New Zealand Consumer Guarantees Act gives you practical advice for when things go wrong with a product or service. It’s also free for Retail NZ members! Have a look today.

And as always, if you have any specific issues in this area or any other, our Advice Service is here to help and can be contacted by email or phone 0800 472 472 (1800 128 086 from Australia).

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