As there is no law that tells retailers how much they can or should charge for any particular product, we can only make sure we get the best value for our money by shopping around and comparing prices.
Freedom of choice is crucial in a free market economy. To ascertain that consumers can actually exercise such freedom when shopping around for the best deals, clear price indication is mandatory.
The Price Indication Regulations specify how shops should display the prices of the products they sell so that consumers can compare prices between outlets, brands and sizes of products.
Basically, if a product is for sale, its price must be indicated. Every kind, size and type of product should have a price on it, and the price should be displayed in a manner that is unambiguous, easily identifiable and clearly legible. Even products displayed in shop windows should be clearly priced.
Goods for sale should either have the price displayed on the actual good or near it, such as on a label on the edge of a shelf. Usually, this kind of price display is opted for when there is more than one item of the same kind, size, type or brand.
Furthermore, shops must display the final price of goods for sale in euros, including VAT and any other taxes or charges. If this is not done, the retailer will be misleading consumers and in breach of consumer legislation.
However, should a retailer make an honest mistake and a product is marked at a lower price than it should cost, we do not have an automatic right to buy the goods at the marked price if the trader proves it was a genuine mistake. Still, when such mistakes are drawn to the attention of the seller, they should be rectified immediately.
If a product is sold by weight, volume or measure, the shop must display the actual selling price and must also show the product’s unit price; that is, how much it would cost for a given quantity of the product, such as a kilo of cheese.
The unit price should also be displayed on or near the item. Unit pricing helps us compare prices across a range of goods which might be in different sizes or by different brands, so we can compare the cost per kilo or per litre of the products.
These regulations cannot be applied when, for instance, goods are sold at an auction, when goods are provided in the course of a service, and also when goods are supplied for the purpose of reselling. Works of art and antiques are also exempt.
In general, service providers are not legally required to display their prices or charges. But when they choose to do so, they must give the final price, inclusive of taxes and charges.
On the other hand, it is advisable that consumers protect themselves from unpleasant surprises by always requesting a quote of all costs involved before committing to purchasing any kind of service.
Businesses such as restaurants, pubs, cafeterias and wine bars are required by law to display their prices in a specific way. Their menus with prices should be visible from the street or at the entrance to the premises, and should be legible and up-to-date.
The reason behind these obligations is that we should be in a position to compare the prices of various premises and to know the prices of a particular establishment before we decide to enter.
During sales, reduced prices should be clearly marked. It is illegal to give a false or misleading previous price.
The Enforcement Directorate within the Consumer and Competition Department ensures the Price Indication Regulations are adhered to by carrying out regular spot checks in retail outlets.
During these visits, market surveillance officers check whether there are any irregularities and, if this is the case, they advise proprietors about their obligations.
Moreover, consumers are encouraged to report any lack of price indication or misleading prices to the Enforcement Directorate by calling Freephone 8007 4400 so that the necessary action is taken.
customer@timesofmalta.com
odette.vella@gov.mt
Ms Vella is senior information officer, Consumer and Competition Department.