Context
The Committee of Advertising Practice has published guidance following research into consumer understanding of reference pricing (e.g., ‘strikethrough’ prices, ‘was-now’ prices and RRPs), which identified that consumers have limited understanding of pricing practices in general, and reference pricing in particular, having an expectation that reference prices are regulated and can therefore be trusted.
Key points to note
The guidance covers the following five key factors to consider:
- Where was the price offered?
- How long was it offered for?
- How many did you actually sell?
- How recently was the price offered?
- Is the RRP the price at which it’s generally sold?
Next actions
None – for information and awareness.