Price reductions

This page is for: 
Business / company

To claim that prices are reduced from the “manufacturer's recommended retail price list” is misleading and deceptive unless the prices are those at which goods are normally sold within that industry.

If the recommended retail price is not widely accepted in the trade, the comparison may be misleading as no real saving is being offered.

This is particularly relevant in industries where technology changes rapidly or models are continually upgraded. For example, a video recorder may have a recommended retail price of $1,000 and at the same time be a two-year-old superseded model, which is actually selling elsewhere for $600. In this instance it would be considered misleading to advertise "Recommended retail price $1,000 - now $600".

Last modified: