'Pay for the price you see’

Correspondent | Tuesday April 26, 2022 06:00

Price display does not only help consumers, it fuels competition. Generally, display of prices on commodities and services breed dynamic competitive process between firms. When rivals see the price of their competitors, it incentivises firms to improve quality, new services and most importantly lower prices to maintain competitive streak, particularly incumbent firms. From supplier point of view, price displays play an important role as they inform the customer about the value of the product and more importantly they play a key promotional role. Price displayed by a business ought to be clear, accurate/precise and not misleading to consumers.

It should be noted that it is illegal for a business to make claims to customers about its goods or services, including claims about price that are incorrect or likely to create a false impression.

This includes advertisement or statements in any media (e.g. radio, TV, online) and any claim made by a person representing a business. Intention is irrelevant in this matter. However, suppliers must take care when displaying prices. This will require that when prices go up, the suppliers ensure that they change the displayed prices immediately so to avoid decreased profit margins. Particular care must be taken when announcing discounts so as to avoid any confusion in the consumer’s mind regarding the price to be paid.

In the same breath, care should be taken to ensure that the displayed price is for the item exactly as it is on the display, for instance, the price displayed on a motor vehicle on a showroom floor in Mogoditshane should include the price of any and all optional extras such as metallic paint and air conditioner already fitted to that particular vehicle. According to Consumer Protection Act 2018 Part IV (11), a supplier shall not display goods or services without displaying the price of the goods or services, and the price shall be displayed in Pula currency.

It must also be displayed in clear and legible letters on the goods or services and in a prominent position where the goods or services are supplied. Furthermore, the price of goods or services shall be deemed to have been adequately displayed if a written indication on the price is annexed to, printed, stamped or located upon the goods or services sold; represented in a manner which may reasonably be inferred that the price is the price applicable to the goods or services in question; or published in relation to the goods and services in a catalogue, brochure or any publication presented to a consumer at a particular time.

The Act further stipulates that a supplier shall not charge a consumer more than the price indicated or displayed for goods or services. Failure to display prices by a business is an offence and carries a sanction upon conviction; a fine not exceeding P500,000, or to imprisonment for a term not exceeding three years or to both.

Recently, the Authority conducted inspections in Mogoditshane where a number of businesses were fined admission of guilty for failure to display prices. Consumers who are aware of their rights as enshrined under the Consumer Law regarding price display will no doubt impress upon suppliers and retailers to align their actions with the tenets of the law.

This will greatly enhance consumer welfare as competitors will incentivise consumers by offering reduced prices and better quality products, wider choice of goods and services, business innovation and productivity. To the business community, the Competition and Consumer Authority (CCA) is appealing to all businesses to be compliant and should establish mechanisms of good business principles when conducting commercial activities with consumers. To the consumers, the CCA implores you to be vigilant and report any malpractices, know your Consumer rights and your responsibilities.

Be aware that as consumers you are the largest economic group in the economy affecting and affected by almost public and private economic decision. You have nothing to lose but your disunity, let consumers unite for a common cause in order to effectively influence key business decisions. We can do this if we participate in upholding consumer protection in the market place.