The Consumer Protection Act 1987 makes it a criminal offence to give consumers a misleading price indication about goods, services, accommodation (including the sale of new homes) or facilities.

It applies however you give the price indication - whether in a TV or press advertisement, in a catalogue or leaflet, on notices, price tickets or shelf-edge marking in stores, or if you give it orally, for example on the telephone.

The price of the vast majority of goods that are available for sale to consumers must be indicated inclusive of VAT, other taxes and any other compulsory charges (e.g. delivery charges).

Prices can be indicated in any of the following ways:
-  on the goods themselves,
-  on a ticket or notice near to the goods or
-  grouped together with other prices on a list or catalogue in close proximity to the goods.

The price indication should be
-  unambiguous,
-  easily identifiable and
-  clearly legible

It is a criminal offence to provide incorrect or misleading price information for goods or services. This applies to both price comparisons (as commonly used in sales and promotions) and single prices.

Further Information 
BERR guidance notes on the Price Marking Order 2004 and the Code of Practice for Misleading Price Indications can be accessed by using the links opposite.