Prices Act 1974 & Price Marking Orders
The Prices Act 1974 is the primary legislation that has enabled numerous Orders on price marking to be introduced. The latest of these is the Price Marking Order 2004 (which revoked the Price Marking Order 1999).
The 2004 Order requires all trades to:
· indicate the selling price of any product offered for sale to consumers except:
a. products supplied in the course of a provision of a service or
b. to sales by auction or sales of works of art or antiques or
c. products sold from bulk or
d. an advertisement for a product.
· indicate the unit price of any product offered for sale to consumers from bulk or required by or under Parts IV or V of the Weights and Measures Act 1985 to be marked with an indication of quantity or made up in a quantity prescribed by or under that Act except:
a. any product which falls within Schedule 2 of the order
b. any product the unit price of which is identical to its selling price
c. bread made up in a prescribed quantity which is or may be for sale in a small shop
d. any product which is pre-packaged in a constant quantity which is or may be for sale in a small shop.
· indicate both selling and unit prices in sterling with additional indications if also prepared to accept payment in foreign currency
· indicate by general notice or other visible means details of any reduction in selling price or unit price previously applicable
· ensure that all price indications are:
a. unambiguous, easily identifiable and clearly legible
b. given in proximity to the product and
c. so placed as to be available to consumers without the need for them to seek assistance from the trader or someone on his behalf in order to ascertain it
For the purpose of the Order:
“Selling price” is defined as the final price including VAT and other taxes.
“Unit price” is defined as the final price, including VAT and all other taxes, for one kilogram, one litre, one metre, one square metre or one cubic metre of a product, except where the unit is specified in Schedule 1 to the Order or the products are sold by number.
“Products sold from bulk” is defined as products which are not pre-packaged and are weighed or measured at the request of the consumer.
“Small shop” is defined as any shop which has a “relevant floor area” not exceeding 280 square metres.
“Relevant floor area” is defined as the internal floor area of the shop, excluding any area not used for the retail sale of products or for the display of such products for retail sale.
Failing to comply with the requirements of the Order is a criminal offence which upon conviction in the magistrates’ court carries a maximum penalty of £5000 or in the Crown Court an unlimited fine.
The Prices Act provides the defence of due diligence or commission by another. It achieves this by reference to Sects. 23 and 24 of the Trade Descriptions Act 1968.
What the trader will need to show to establish a defence is that he was aware of his obligations that he had set up appropriate systems to meet those obligations and that he had monitoring arrangements in place to ensure the systems worked. Training of relevant staff is essential.
All PBS information sheets are designed to provide the detail you need to implement best business and employment practices. They are not a detailed commentary on the current law and where advice is needed in a specific case you should contact PBS for expert consultation.
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