Q: I went to buy from a warehouse sale advertised as ‘70 per cent off’. When I entered the shop there was a note saying ‘Prices on garments are not yet discounted’.
On most of the items there were two tags, such as ‘was €50’ and ‘now €25’. Because of the first note, I assumed the 70 per cent off would apply to the cheapest price. My first question is whether I was right or wrong to make such an assumption?
To my surprise, when I went to the cash desk to pay, the cashier deducted the 70 per cent from the higher price, rather than the lower price. When I complained about this with the shop manager, she said the 70 per cent discount was on the highest price, which was the original price of the garment.
Could you advise whether this is legal?
A: First of all, this shop should not have put up a sign stating that ‘Prices on garments are not yet discounted’.
Such a statement is in breach of the Price Indication Regulations, which oblige traders to clearly indicate items for sale with a price, and this price should be the final price the consumer will pay at the cash desk.
The way this outlet is indicating prices can be confusing for consumers. The Enforcement Directorate at the Malta Competition and Consumer Affairs Authority, responsible for the Price Indication Regulations, will take the necessary action to ensure prices are properly indicated.
With regard to your query about whether the 70 per cent discount should have been applied to the cheaper price on the tag, normally when outlets promote a discount, the amount of discount is deducted from the original price and not from a previously discounted price.