Goods displayed in retail outlets for sale to consumers must be clearly indicated with a price. Consumers need to know how much a product costs without the need to ask the seller for assistance, so they can freely compare prices and make informed buying decisions. Appropriate price indication also ensures that consumers can compare prices within a particular outlet and also with other retail outlets.
As a general rule, the Price Indication Regulations stipulate that all goods displayed for sale must have their prices clearly and accurately indicated. The same rule applies to items displayed in shop windows. More specifically, prices must be indicated in an unambiguous, easily identifiable and clearly legible manner. Hence, it is not acceptable that price tags of products displayed in shop windows are turned face down or hidden from consumers’ vision.
When more than one item of the same kind, size, type or brand of the same goods are displayed for sale, the Price Indication Regulations provide that it is sufficient to show the price on just one of these items, or near them, such as on a label on the edge of a shelf where the product is displayed. Furthermore, the price indicated must be in euros and the final price the consumer will be asked to pay at the cash point. Thus, the displayed price has to include VAT and any other taxes or charges.
This rule also applies to the indication of prices during sales. It would be considered an unfair commercial practice if the indicated price is not the final correct one. When this happens consumers may insist on paying the displayed price.
Another legal obligation retailers have is to indicate two prices on goods that are sold by unit weight or volume. One of the prices should indicate the actual price, being the price for a given quantity of the good. The other indicated price is the unit price, being the final price per kilogram, litre, metre or cubic metre of the goods.
With regards to pre-packaged solid products preserved in a liquid medium, the price per unit must refer to the weight of the solid good without the liquid in which it is contained. The unit price may be indicated in a smaller font than the actual selling price, but must still be legible. Unit pricing makes it easier for consumers to compare prices in different sizes as they compare the cost of one kilo or one litre of a particular product.
Obligations sellers have under the Price Indication Regulations do not apply to goods supplied for the purpose of reselling; goods sold at an auction; goods provided in the course of a service; and also works of art and antiques.
With regards to the purchase of services, the regulations do not oblige service providers to display a price list. However, to avoid unnecessary complaints, before providing a service, traders should clearly inform their customers how much it will cost them to purchase a particular service.
Simultaneously, consumers should safeguard themselves from unpleasant surprises and request a quotation of the costs involved before committing themselves to the purchase of a specific service.
Traders are bound to ensure full compliance with these regulations. They are also responsible for any infringements made by people in their employment. Violation of these regulations amounts to an offence and, if found guilty, traders are fined. In case of a second or subsequent convictions, traders can also have their trade licence suspended for a week.
To ensure adherence to the Price Indication Regulations, the Enforcement Directorate within the Office for Consumer Affairs carries out regular spotchecks in retail outlets around Malta and Gozo. Consumers may report any lack of price indication or misleading practices to the Enforcement Directorate by
calling on Freephone 8007 4400 or by sending an e-mail to info@mccaa.org.mt.
odette.vella@mccaa.org.mt
Odette Vella is director, Information, Education and Research Directorate, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.