Newtown retailer fined heavy for false ‘sale’

A Newtown company which was found to be falsely advertising children’s toys and related equipment at ‘sale’ prices when they had never been offered for sale at the higher price has paid the price with over £14,600 in fines and costs being levied.

 

Rebo Ltd, whose registered office is High Street, Newtown, admitted eight offences under the Consumer Protection from Unfair Trading Regulations in a prosecution led by Powys County Council’s Trading Standards Service. Welshpool Magistrates Court fined the company £1,500 for each offence (£12,000 in total) and ordered them to pay £2,625 costs and a £15 victim surcharge.

 

Magistrates heard from the prosecution that a number of products advertised on the company’s websites had not been previously offered for sale at the higher prices as alleged and were therefore misleading to any consumer visiting the websites.

 

Following a complaint from a consumer, Trading Standards staff had been monitoring the websites for 12 months and had recorded the details. ‘Was’ and ‘Now’ prices were used to describe reductions in goods ranging from trampolines to play centres and turned out to be fictitious on a number of products.

 

Magistrates were also informed that an item reduced in a sale had to have been available at the full price for 28 consecutive days in the previous six months and that the company had been advised of the law by Trading Standards staff previously.

 

Cllr Graham Brown, Board Member responsible for Public Protection, said: “The Consumer Protection from Unfair Trading Regulations were created to protect consumers and honest businesses and Trading Standards staff can use their powers under the law to tackle those businesses who mislead consumers as to prices or description of goods.”

 

Ken Yorston, the council’s Trading Standards Manager, said: “The vast majority of businesses are trading fairly within the marketplace. However, where businesses do not comply with the regulations, they are gaining a competitive advantage over rival companies and are misleading consumers who have every right to complain.

 

“We will investigate such businesses with a view to take formal action if non-compliance is found. In these times when more and more people are turning to the internet as a means to shop, the protection afforded needs to be increased but consumers must remain vigilant in their transactional decisions.”