Pricing law and guidance – London Borough of Bromley

In this guide, the words 'must' or 'must not' are used where businesses are legally required to do (or not do) something. The word 'should' is used where there is established legal guidance or best practice that is likely to help businesses avoid breaking the law.

This guidance is for England, Scotland and Wales

The price of goods, services or digital content is a key part of a contract (a legally binding agreement) between you and a trader. If there is a dispute over a price and a contract has not yet been formed, the trader can turn down your offer to buy the goods.

In some circumstances, a trader may be in breach of the Digital Markets, Competition and Consumers Act 2024 (DMCCA) if they mislead you over a price or the way in which a price is calculated. There are certain commercial practices relating to price that are considered unfair in all circumstances.

Goods, services and digital content must be clearly and accurately priced.

CONSUMER CONTRACTS AND PRICE

A contract is a legally binding agreement between you and a trader, and is made when certain elements come together:

there must be an 'offer' to buy - for example, you remove goods from the shelf and take them to a checkout
there must be 'acceptance' of the offer - for example, a trader puts the goods through the till
there must be a transfer of 'consideration'. This is the payment you make for the goods, service or digital content
there must be an 'intention to make a contract'. You and a trader must intend to be legally bound by the contract and both understand what the contract actually means
you must have 'legal capacity'. In other words, you must be legally capable of making a contract

The price of goods, services or digital content is a key part of a contract (a legally binding agreement) between you and a trader. When a trader displays goods, services or digital content (for example, as part of a window display, in-store, online or in a brochure), they are making what is legally referred to as an 'invitation to treat', which essentially means that they are inviting you to make an offer to buy. This may include a price.

If there is a dispute over a price and a contract has not yet been formed (perhaps a trader will not consider a price reduction, or they made a mistake and the price on display is too low), they are legally entitled to turn down your offer to buy. What this means is that you cannot insist that a trader sells the goods, service or digital content at the advertised price. In certain circumstances, however, you may be misled by a trader's unfair commercial practices in relation to price. See the 'Misleading prices' section below for more information.

If all the elements of the contract, including the price, come together, you and a trader are legally bound by the price you offer to pay and the price a trader agrees to charge. This means that, in most cases, a trader cannot change the price at a later stage. There may be some exceptions to this - for example, a surcharge on the cost of a holiday.

The Consumer Rights Act 2015 (CRA) sets out rules to protect you if a trader tries to use terms in a consumer contract or notice that are unfair. Some terms are automatically unfair in all circumstances, while others are not automatically unfair but may be considered unfair depending on how they are used. For example, if a trader relies on a term to allow them to get out of a contract at their discretion (perhaps they decide the agreed price is too low), but the term does not allow you the same discretion, it may be considered unfair. Take note that terms that actually set the price are exempt from the assessment of fairness, as long as they are transparent and prominent. The 'Unfair terms in consumer contracts and notices' guide gives more information.

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 give you rights against a trader when you buy goods, services or digital content. The Regulations split contracts into three types:

on-premises contracts. Buying from their business premises
distance contracts. Buying without face-to-face contact, such as via the internet or telephone
off-premises contracts. Buying away from their business premises, such as on your doorstep

For on-premises contracts (which includes regular market stalls), you are entitled to expect that a trader gives you the total price of the goods, services or digital content, including taxes, in a clear and understandable way before you enter into the contract (if the price cannot be worked out, you must be given the method of calculation). A trader must also give you details of any additional delivery charges.

The same information must be given before you enter into a distance or off-premises contract. However, in addition, you must also be given the total costs per billing period / monthly costs for open-ended or subscription contracts, as well as any costs involved in using distance communication to finalise the contract. If a trader does not give you this information, you do not have to pay those charges.

If a trader provides a telephone helpline for you to contact them about the goods, services or digital content that you have bought, they can only charge you the 'basic rate'. Numbers beginning with the prefixes 01, 02, 03 or 07 (except those starting with 070) and Freephone numbers beginning with 0800 and 0808 meet the requirements of the Regulations. If a trader charges you more than the basic rate, you are entitled to reclaim the extra from them.

The 'Buying from business premises: on-premises contracts explained', 'Buying by internet, phone and mail order: distance contracts explained' and 'Buying at home: off-premises contracts explained' guides give more information on these Regulations.

MISLEADING PRICES

The DMCCA prohibits commercial practices that are unfair to consumers.

A commercial practice is unfair if it is likely to cause you to take a decision about a purchase that you would not otherwise have taken, as a result of the practice involving:

a misleading action, which includes giving you false or misleading information as to the price of a product or the way the price is calculated
a misleading omission, which includes leaving out important information about the price of a product or the way it has been calculated
an aggressive practice, which involves harassment, coercion or undue influence - for example, engaging in high-pressure selling that limits your ability to make an informed decision
contravention of the requirements of professional diligence - for example, the trader does not deal honestly or fairly with you

A commercial practice is also unfair if:

it leaves important information out of an invitation to purchase - for example, the total price of a product, unless the nature of the product means the price cannot be reasonably calculated in advance
it is one of 32 commercial practices listed in Schedule 20 to the Act, all of which are unfair in all circumstances. Some of the 32 practices specifically relate to pricing:
- inviting you to purchase a product at a special offer price without making you aware that there is limited stock / availability, and the trader knows that demand for the product generated by advertising will outstrip supply (bait advertising)
- inviting you to purchase a product at a special offer price, but then refusing to show that product to you, refusing to take orders or deliver the product within a reasonable time, or showing a defective sample of the product with the deliberate intention of promoting a different product (bait and switch)
- falsely stating that the product will only be available for a limited time or that special terms for that product will only be available for a certain time with a view to persuading you to make an immediate decision about the purchase
- describing a product as 'free' (or similar wording) if you have to pay something (other than unavoidable costs of carrying out the transaction and collection / delivery charges)

The definition of 'product' in the DMCCA covers goods, services, digital content, immovable property and rights or obligations.

If you have been misled or the trader or engages in an aggressive practice, report your complaint to the Citizens Advice consumer service / Advice Direct Scotland for referral to Trading Standards (contact details can be found at the end of this guide).

The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) include provisions that give you rights of redress if a trader has engaged in an unfair commercial practice involving a misleading action or an aggressive practice: the right to unwind the contract, the right to a discount and the right to damages. See 'Misleading and aggressive practices: rights of redress' for more information. Please note that the CPRs' provisions on rights of redress will be replaced by similar ones in the Digital Markets, Competition and Consumers Act 2024 (DMCCA). However, the DMCCA's rights of redress provisions are not yet in force.

Guidance for Traders on Pricing Practices (produced by the Chartered Trading Standards Institute and available on the Business Companion website) is designed to explain pricing law to traders and provide guidance on what is considered to be good practice when giving information to consumers about prices. There is no legal requirement for traders to comply with the guide, but it takes their legal obligations into account. Whilst the guide is aimed at traders, you may wish to check out how a trader ought to price products for you.

DYNAMIC AND SURGE PRICING

This is a system used by traders to set the price of goods, services and digital content whereby the price is adjusted in response to consumer demand at any given time (high demand means the price will rise and when demand falls, the price will reduce). For example, event ticket prices, rail and airline fares, and holiday prices will often rise during peak times.

This flexible method of pricing must not be misleading.

PRICE MARKING OF GOODS

The Price Marking Order 2004 requires traders to display the selling price of goods to you, and includes sales by electronic means.

The following are exempt from the Order:

goods that are supplied as part of a service (take note that the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 may require the trader to show the manner in which a price is calculated if it cannot be worked out in advance)
sales by auction, or sales of art and antiques
products sold from bulk
advertisements for goods

The selling price must be:

inclusive of VAT
clear and easy to understand
close to the goods or, in the case of distance contracts or advertisements, close to a visual or written description
available to you without them having to ask for it

The indication of any charges for postage, packing or delivery of a product must be clear and easy to understand.

For goods sold in bulk, a trader must show the unit price. In general, a trader must show the unit price in sterling (the price for a kilogram, a litre, a metre, a square metre or a cubic metre) of goods sold from bulk. This is where the goods are weighed and measured at your request, such as fruit and vegetables or cooked meats.

Also, in large stores (having a shop floor area greater than 280 square metres), the unit price must be displayed for prepacked goods marked with a quantity or made up in a prescribed quantity. The unit price is usually shown as the price per kilogram (or litre) or 100 gram (or millilitres).

In the event of a VAT rate change, a retailer may display a notice or fix a label to a catalogue to inform you about the new rate for 28 days after the change of rate.

Comparing the unit price can give an indication of which product or sized container gives the best value for money. When comparing unit prices, the price per 100 grams or millilitres has to be multiplied by ten in order to compare it with the unit price per kilogram or litre. Sometimes a larger pack has a higher unit price and is not, therefore, the best value for money.

BUYING OR SELLING FOREIGN CURRENCY

The Price Indications (Bureaux de Change) (No 2) Regulations 1992 apply to traders that buy or sell foreign currency to consumers in any manner.

You are entitled to expect that, where exchange rates are given, the information available is accurate, clear, unambiguous, easily identifiable and, where applicable, legible and audible. If an exchange rate is displayed on-premises it should be prominent, either just outside or just within the premises. The display must include all relevant information, such as buying and selling rates, and fees or commission rates.

You must also be given a receipt showing the full details of the transaction, including the name and address of the trader or a suitable method of identifying the trader.

PRICING OF HOLIDAYS

The Package Travel and Linked Travel Arrangements Regulations 2018 state that the organiser or retailer must give you specific information before the package travel contract is finalised. This includes information on the total price of the package, as well as taxes and any additional fees that may apply.

The 'Holidays' guide gives more information.

LETTING AGENTS' FEES

Under the CRA, letting agents are under a duty to publicise fees that relate to letting agency or property management work.

See 'Look before you rent' for more information on renting a property.

PAYMENT SURCHARGES

Under the Consumer Rights (Payment Surcharges) Regulations 2012, traders are banned from imposing surcharges on consumers for using the following payment methods:

consumer credit, debit or charge cards (commercial cards are exempt from the Regulations)
e-payment services such as Paypal
Apple Pay, Google Wallet or other similar payment methods

Please note that it is the method of payment, rather than the status of the buyer, that determines whether the ban on surcharges applies. So, for example, if the customer is a sole trader buying for a business but using a personal credit card, the rule applies. If the customer is using a corporate credit card, even for a personal purchase, the rule does not apply.

Traders can impose a surcharge for other methods of payment. However, the amount charged must not be excessive; it must reflect the actual cost to the trader of processing the payment.

The Regulations apply to most consumer contracts. It is important to note that it is the method of payment, rather than the status of the buyer, that determines whether the ban on surcharges applies. So, for example, if the customer is a sole trader buying for a business but using a personal credit card, the rule applies. If the customer is using a corporate credit card, even for a personal purchase, the rule does not apply.

The Regulations give you rights of redress. Any requirement to pay a banned surcharge, or the part of a surcharge that is excessive, is unenforceable by the trader. This means you do not have to pay. If you have already paid the surcharge or the excess, then you are entitled to a refund. If you have a complaint about surcharges, you can report it to the Citizens Advice consumer service / Advice Direct Scotland for referral to Trading Standards.

Some traders may impose a minimum spend if you wish to pay by card; the transaction may not be cost effective for the trader because of card payment processing charges.

IN THIS UPDATE

Changes made to reflect the coming into force of the Digital Markets, Competition and Consumers Act 2024 (Part 4, Chapter 1: 'Protection from unfair trading').

Last reviewed / updated: September 2025

Key legislation

Please note

This information is intended for guidance; only the courts can give an authoritative interpretation of the law.

The guide's 'Key legislation' links may only show the original version of the legislation, although some amending legislation is linked to separately where it is directly related to the content of a guide. Information on amendments to legislation can be found on each link's 'More Resources' tab.

For further information in England and Wales contact the Citizens Advice consumer service on 0808 2231133. In Scotland contact Advice Direct Scotland on 0808 164 6000. Both provide free, confidential and impartial advice on consumer issues.