Fair Trading Act

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Are your discounts legal?

The Commerce Commission has published a reminder to retailers to make sure published discounts are legal and comply with the Fair Trading Act. The Commission has warned that retailers can be guilty of misleading consumers 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.