LONDON (Alliance News) - The UK consumer protection regulator Thursday forced two of the country's carpet retailers to change their pricing practices after raising concerns that they were misleading consumers through the use of promotions and incorrect pricing.
In a statement, the Office of Fair Trading said United Carpets Group PLC had signed undertakings that commit it to ensuring that its advertised recommended retail prices are genuine and are those at which its products are typically sold throughout the year.
It said United Carpets had also pledged to refrain from using time-sensitive promotions like a "closing down sale" or "closing down for refurbishment" without giving consumers clear information and an explanation of the circumstances of the promotion.
"The company can confirm that it has signed up to two additional retailing principles agreed with the OFT to ensure even greater transparency to our pricing practices. While the OFT's investigation into the sector is ongoing, United Carpets is no longer a part of it," United Carpets said in a statement.
Nixon & Hope Ltd, meanwhile, has agreed to change its practices after its Floors2go website was found to be advertising products at an initial square metre price which excluded Value Added Tax, the UK's sales tax, the OFT said in its statement.
The regulator said it had also found that some claimed savings were incorrect and was concerned that the displayed prices were potentially misleading to consumers as they could not in fact buy the product at the price shown.
"Nixon & Hope has already amended its website to ensure any percentage savings claims are accurate. It has committed to amend further its website so that where a price is indicated to consumers a selling price including VAT will be given. This change will be completed in February," the OFT said.
The OFT's move on the carpet retailers comes amid a broader investigation it is conducting into potentially misleading pricing by some furniture and flooring retailers.
Carpetright had confirmed it was sent a letter by the regulator asking for information on its pricing and consumer protection measures when the probe was opened last August. People familiar with the matter had also told Alliance News that bed retailer Dreams and carpet specialist ScS were also sent letters. Other UK media reported that retailers DFS, Furniture Village, Harveys and Benson Beds, both owned by Steinhoff International, were the other companies in the probe. although they had declined to comment.
United Carpets shares were down 3.12% at 6.05 pence Thursday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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