Two leading establishments cut the quoted recommended retail prices (RRPs) on a number of items on sale following a blanket warning by the Consumer and Competition Division to supermarkets and discount stores.

The division had written to the outlets in the wake of inspections at a number of discount establishments. The inspections revealed that some outlets were quoting RRPs that were different to those indicated by importers, wholesalers or agents.

One of the shops changed its quoted RRP on three items and another changed it on 12.

Quoting a higher RRP amounts to misleading price discounts and is in breach of article 48 (2) of the Consumer's Affairs Act, which lays down that, apart from deceiving a customer, a misleading advertisement can also "injure a competitor of the person whose interests the advertisement seeks to promote".

Price discounts are calculated by deducting the selling price from the RRP. When the RRP is higher, customers are given the impression that a significant discount is being given on the item.