Recommended reading: Quoting RRPs in your ads


INSIGHT
Published
Mar 21st '24
Share
Facebook

We’ve all seen ads which compare the price of a product against the recommended retail price (RRP). But advertisers should exercise caution before making these types of claims, as comparisons with RRPs are likely to mislead if the RRP differs significantly from the price at which the product or service is generally sold.

 

With spring sales just around the corner, there is no time like the present for a brief reminder of the Dos and Don’ts when making RRP savings claims.

 

  • Don’t rely on RRPs solely given by the manufacturer: The ASA is likely to uphold complaints if marketers cannot demonstrate that the product was sold at the quoted RRP. In a 2022 ruling, Lidl could only point to the manufacturer’s website to evidence the RRP. This was not enough to show the RRP was the price the product was ‘generally sold’ at.
  • Don’t reference a RRP for products not yet launched: In 2017, the Advertising Standards Authority (ASA)ruled that a price included in a pre-launch article didn’t demonstrate that the item was ‘generally sold’ at that price.
  • Do be aware of the difference between selling and advertising at a price: Complaints have been upheld for ads claiming to offer products on sale, where the advertiser could not show that sales had been made at the original price. In 2022, Happy Beds referenced the ads of other retailers to show that the quoted RRP was the ‘generally sold’ at price. But the quoted RRP had been discounted in each instance. The ASA said the quoted RRP was not the ‘generally sold’ at price.
  • The ‘generally sold’ price can be sector-dependent: The product and/or sector can influence what constitutes the ‘generally sold’ price. For example, large, seldom-bought items may be considered ‘generally sold’ if available in (and therefore purchased from) a small number of stores, which is unlikely to be the case for more frequently purchased products.
  • Do make sure the ‘generally sold’ price is not significantly different to the RRP: To substantiate their use of a RRP, Mothercare provided the ASA with a range of ads which advertised the product for sale at various price points across a range (including the quoted RRP in two instances). The other price points deviated from the quoted RRP by between 6% and 40%, which was deemed significant, and was not sufficient to demonstrate that the quoted RRP was the ‘generally sold’ at price.

 

For further information, take a look at Prices: Recommended retail prices (RRPs).

 

Source: Committee of Advertising Practice (CAP)

 

About CAP

The Committee of Advertising Practice (CAP) is the sister organisation of the Advertising Standards Authority (ASA) and is responsible for writing the Advertising Codes.

 

Note: This advice is given by the CAP Executive about non-broadcast advertising. It does not constitute legal advice. It does not bind CAP, CAP advisory panels or the ASA.

 

Need A Regulatory Marketing Compliance Consultant? A Bit More About Us

 

About us

LS Consultancy are experts in Marketing and Compliance, and work with a range of firms to assist with improving their documents, processes and systems to mitigate any risk.

 

We provide a cost-effective and timely bespoke copy advice and copy development services to make sure all your advertising and campaigns are compliant, clear and suitable for their purpose.

 

Our range of innovative solutions can be tailored to suit your unique requirements, no matter whether you’re currently working from home, or are continuing to go into the office. Our services can be deployed individually or combined to form a broader solution to release your energies and focus on your clients.

 

Contact us today for a chat or send us an email to find out how we can support you in meeting your current and future challenges with confidence.

 

Explore our full range today.

 

Need A Regulatory Marketing Compliance Consultant? A Bit More About Us

 

Contact us

 

Why Not Download our FREE Brochures! Click here.

 

Call Us Today on 020 8087 2377 or send us an email.

 

FOLLOW US

Connect with us via social media and drop us a message from there. We’d love to hear from you and discuss how we can help.

 

Facebook | Instagram | LinkedIn | X (formally Twitter) | YouTube

 

Contact us