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Old 31-12-2006, 12:47
Harry Stottle
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Default Re: VAT inclusive prices when selling to the public. ASA ruling.


"Raj" <raj@(remove...)kundracomputers.co.uk> wrote in message
news:5DMlh.204075$bz5.125169@fe3.news.blueyonder.co.uk...[color=blue]
>
> "Harry Stottle" <sorryspamdoesntwork@nospam.uk.co> wrote in message
> news:45978f8a$0$97274$892e7fe2@authen.yellow.readfreenews.net...[color=green]
>> There have been several discussions in various newsgroups recently
>> about
>> if companies are obliged to quote VAT inclusive prices when
>> advertising
>> goods or items for sale to the general public. The main objectors
>> against quoting VAT inclusive prices have been companies that sell to
>> other companies, but who also sell to the general public, and their
>> argument was that because they do not have to quote VAT inclusive
>> prices
>> when selling to other companies, this somehow excuses them from
>> quoting
>> VAT inclusive prices if they also sell to the general public.
>>
>> The ASA (Advertising Standard Agency) has recently ruled that Dell
>> Computers misled customers when advertising items to the general
>> public,
>> the ASA stated that when advertising good to the general public, VAT
>> inclusive prices must be quoted, and these VAT inclusive prices must
>> be
>> at least as prominent as the VAT exclusive price if the VAT exclusive
>> price is used, in other words, the VAT inclusive price must be stated
>> alongside the VAT exclusive price, and the type face used must be at
>> least as large and as clear as the VAT exclusive price.
>>
>> Below is a quote from the article in PCPro magazine, the links to the
>> article and the ASA ruling are given below the quote, so please, if
>> you
>> are a business, and selling goods or items to the general public, as
>> well as to other companies, lets have VAT inclusive prices quoted in
>> your adverts, and stop trying to hide behind the mistaken belief that
>> you do not have to comply with the law on quoting VAT inclusive
>> prices
>> in your adverts.
>>
>> <Quote> 'We nevertheless considered that, because the insert targeted
>> both the general public and businesses, the VAT-inclusive prices
>> should
>> have been given at least equal prominence to the VAT-exclusive
>> prices.
>> We also considered that, because the desktops could be of interest to
>> non-business users who would be unable to get a desktop for £199, the
>> approach of using a "from" price excluding VAT was misleading. '
>>
>> ASA told Dell to take greater care in future. Specifically, it should
>> 'avoid errors that could lead to consumer disappointment'. The
>> organisation also told Dell to ensure that VAT-inclusive and
>> VAT-exclusive prices were quoted with equal prominence in adverts
>> with a
>> general readership. </Quote>
>>
>> [url]http://www.pcpro.co.uk:80/news/99545/dell-misled-customers-says-asa.html[/url]
>>
>> [url]http://www.asa.org.uk/asa/adjudications/Public/TF_ADJ_42026.htm[/url]
>>[/color]
>
> Thanks for information.
> It will be fair on customers if both prices are displayed in same
> size.
>
> Question: Will E bay enforce this as well?
>[/color]

This law has been in existence for several years, but it has been hard
to define previously because of the legal jargon used in official
documentation. The ruling by the ASA, against a high profile company,
has now made it much clearer, and hopefully, companies will act on it as
soon as possible to avoid being reported to the ASA themselves. I cannot
see any justification for quoting VAT exclusive prices for goods or
items offered for sale to the general public, other than to mislead, and
any company doing this needs reporting.

Regarding eBay, perhaps someone should send a copy of the ruling to
them, it is probably their responsibility to remove any advertisement
which doesn't comply with the ASA ruling, and eBay should enforce it.


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