The regulator said that these retailers had all advertised reductions from previously high prices, which had conned customers into thinking they were getting a sale or a bargain. 

The OFT said that ‘reference pricing’ was widely used.

Reference pricing refers to those offers which demonstrate to consumers that they offer good value by including a reference to another, typically higher, past or future price (such as ‘Was £800, Now Half Price £400’ or ‘Now £400, After Event Price £800’).

However the OFT said that in certain cases, the retailers under investigation had not sold a single product at the previous higher price, with 95% of the sales at the lower advertised price, suggesting that the ‘original’ prices were not genuine and were merely advertising gimmicks.

The regulator said that certain pricing techniques when used in a misleading way can result in consumers making purchases they would not have made were prices more clearly advertised, or to spend more than they need to.

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‘Buy now’ prices also put pressure on customers to make a purchase as soon as possible, rather than shop around for a better deal.

The OFT has refused to name any of the retailers under investigation, however if the six retailers under investigation continue to mislead their customers, the regulator has the power to fine them up to 30% of

Consumers who are shopping around this bank holiday weekend are advised to ask the shops how long reference prices were used for and what percentage of sales were achieved at the higher price.

Under the pricing practices guide, by the Department of Business, Innovation and Skills, the length of the new lower price sale should not be longer than the time the old higher price was available for.