The High Court ruled against Officers Club Ltd last May, finding
it in breach of the Control of Misleading Advertisements
Regulations of 1988. It established that if retailers advertise
discounts from their own previous prices, the previous prices must
be genuine prices. One of the features of a genuine price is that
the retailer must honestly believe that the goods can be sold in
significant numbers at that price.
The draft guidance is now out for consultation until 24th
August 2006. It explains the legal obligations of retailers using
non-broadcast advertising to publicise reductions from their own
previous prices.
Christine Wade, OFT Director of Consumer Regulation Enforcement
said: "'When finalised this guidance will be available to help
retailers understand and comply with the law and will give
confidence to consumers that bargains are genuine."
