House Of Fraser Fined £40,000 For Misleading Consumers

High street retailer House of Fraser has today been fined £40,000 after it admitted misleading customers about price discounts on its goods in the run up to Christmas 2015. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

The investigation, led by Torfaen County Borough Council, found that the store was displaying misleading price comparisons on Christmas sale items making shoppers believe they were getting a better bargain than actually existed. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

Trading standards officers visited House of Fraser stores in Cwmbran, Cardiff and Bournemouth and online and found numerous Christmas items on sale that were labelled with WAS/NOW price indications making consumers believe that the goods had previously been on sale at only the higher prices. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

But what the price tags did not show was the lower intervening prices so customers were unaware whether they were receiving a true reduction in price. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

Lee Reynolds, prosecuting the case on behalf of Torfaen Council, told Newport magistrates court that in April 2015, just five months earlier, the City of Westminster Council had written to House of Fraser in response to a complaint about their pricing of handbags, making specific reference that they were not following Pricing Practices guidelines. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

District Judge Martin Brown, sentencing House of Fraser, said consumer protection should be at the forefront of the company’s principles: ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“It may seem to some to be a rather trivial affair, but this is a large retailer in whom the public consider they can place their trust. This business practice is one that a company of this standing should have been painstakingly guarding against.” ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

He did however accept the company had no previous convictions for these offences and had pleaded guilty at the earliest opportunity. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

Councillor Gwyneira Clark, Torfaen’s executive member for planning and public protection, said: “Shoppers have a legal right to expect items on display for sale, both in store and online, to be correctly described and priced. We’ve seen many cases now locally and nationally where retailers are misleading people with their sales promotions. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“This case sends a clear warning to them that our trading standards officers will act in the interests of our residents to crackdown on those who fail to adhere to government guidelines and consumer protection legislation.” ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

Matthew Bartlett, senior trading standards officer at Torfaen council who led the investigation, said “Trading standards officers work with their colleagues across the UK to ensure that consumers’ rights are protected and retailers are acting in accordance with the law.” ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

The company pleaded guilty to eight offences under the Consumer Protection from Unfair Trading Regulations 2008. In total they were fined £40,000, ordered to pay £8501 in costs and a £120 surcharge. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​