CTSI Publishes Revised Guidance for Traders on Pricing Practices

On 13 August, the Chartered Trading Standards Institute (CTSI) published its updated guidance for traders on pricing practices which is intended to help businesses comply with consumer protection law when presenting prices to consumers. 

The document was developed as part of a review of previous guidance issued by the Department for Business, Innovation and Skills (which has now been withdrawn) and reflects changes in legislation and market practices. It covers a range of pricing strategies, including promotional pricing, price comparisons, and the use of reference prices. The CTSI notes that the guidance is intended to help traders understand how to apply consumer protection law in practice when presenting prices to consumers.

Who and what is covered by the guidance?

Traders: anyone who regularly sells or engages in the process of selling products is likely to be regarded as a trader and must comply with UK consumer laws when selling products to consumers within the UK. Specifically, they are bound by obligations under the Digital Markets, Competition, and Consumers Act 2024 (DMCCA).

Products: can include various things including goods, services and digital content. The guidance addresses a wide range of products from airlines, hairdressers and supermarkets to platforms used for business-consumer commercial practices. 

It should be noted that the guidance doesn’t cover all legislation or business-to-business transactions.

Guiding principle

The CTSI recognises that it cannot identify every fair or unfair pricing strategy and so has tried to focus on only the main areas of concerns. As the legislation in this area focuses on general principes of fair dealing rather than prescriptive rules, the guidance emphasises the guiding principle that:

Traders have the responsibility for ensuring that their pricing practices do not mislead consumers.

Key areas addressed within the guidance:

1. General obligations – including taking special care with vulnerable consumers, indicating the total price of products (inclusive of taxes) when inviting customers to purchase them and including all compulsory fees and charges in the price.
2. Banned pricing practices – the guidance sets out a number of practices considered to be unfair and unlawful in all circumstances by the DMCCA. An example of this is falsely stating that a product will only be available at a particular price or on particular terms for a limited amount of time to persuade a consumer to make an immediate decision.
3. Price promotions - Traders should ensure that any promotional price is genuine, transparent and that the reference price used is the actual price at which the product was previously offered.
4. Reference pricing – this refers to price promotions that aim to demonstrate good value by referring to another (typically higher) price. The guidance sets out that any price advantage must not be misleading or unfair.
5. Other pricing practices – including time-limited offers, volume offers, subscriptions and additional charges. For example, any time restrictions must be clearly stated and adhered to.

The CTSI emphasises that the guidance is not a substitute for the law but is designed to support compliance and promote fair trading practices. It is non-binding on the courts and the circumstances of any particular case will need to be considered to determine whether a pricing practice is fair or not.

The CTSI’s revised pricing guidance encourages businesses to adopt a proactive approach compliance strategy by reviewing their pricing structures and promotional materials, ensuring internal teams are fully briefed on the updated expectations, and embedding transparency into pricing communications. Doing so not only supports compliance with the DMCCA but also helps build consumer trust and mitigate regulatory risk in an evolving consumer regulatory landscape.

If you have any questions or would otherwise like to discuss any of the issues raised in this article, please contact Richard Hugo, Amanda Leiu, or another member of our Commercial & Technology team.

This article was written by Fraser Campbell and Amanda Leiu.

Traders have the responsibility for ensuring that their pricing practices do not mislead consumers ~ Chartered Trading Standards Institute