United Carpets and Floors2Go change pricing strategies after OFT probe

United Carpets has said it will ensure its advertised recommended retail prices are genuine and reflect the prices that products are typically sold at throughout the year. It will also refrain from using time-sensitive promotions such as ‘closing down Sales’ without giving an explanation of the circumstances of the promotion.

Meanwhile, Nixon & Hope, which operates as Floors2Go, has agreed to change its practices after its website was found to be advertising products at prices that excluded VAT. The OFT also found that some claimed savings were incorrect. 

The OFT was concerned that the Floors2Go display prices were potentially misleading to consumers as they could not buy the product at the price shown.

Nixon & Hope has already amended the Floors2Go website to ensure any percentage savings claims are accurate. It has agreed to further change its website so that selling prices include VAT. This change will be completed in February.

OFT director, goods and consumer group, Gaucho Rasmussen said: “Shoppers rely upon clear, honest and upfront advertising of prices. When retailers advertise misleading prices or promotions, consumers often make different purchases – or spend more money – than they otherwise might have done. We therefore welcome the changes that United Carpets and Nixon & Hope have made, and agreed to make, to their pricing and marketing strategies.

“When buying big-ticket items, consumers should always shop around and check that the price they are paying represents value for money.”

United Carpets chief executive Paul Eyre said: “We are particularly pleased to have been able to work with the OFT to eliminate any unnecessary issues. The OFT voiced a concern over the use of recommended retail prices and whilst these have been provided to us by independent third parties we decided to phase out their use over a period of time and that exercise was completed by the end of 2013.

“The OFT also suggested that should it be necessary to hold a store closing sale then a small amount of additional information could be displayed. On the odd occasion where this might arise in the future we are more than happy to do that.”