The Consumer Affairs and Price Control Division within the Ministry of Commerce, Industry, Labour and Immigration, has issued a warning letter to Bulk Shop regarding a misleading discrepancy between the price it displayed on a product and the price charged in the shop by the cashier.
CAPCD Director Geoffrey Dan Hou’ua says discrepancies between the price displayed on the shelf and what consumers are actually charged at the counter or cash register are an on-going issue experienced by many consumers when doing their shopping.
“All traders must ensure that the price they display matches the price they charge at the point of sale.” Mr Hou’ua says. “Displaying a lower price than that charged at the cashier misleads consumers and could be a breach of the Consumer Protection Act 1995.”
“We have found Bulk Shop advertised a price reduction for a frozen product and when the consumer went to the cashier they were charged the original, higher price.”
“Consumers make their buying decisions based on the prices displayed on the products. They have a right to accurate information about what price they will be charged by the cashier.”
The CAPCD has been actively investigating traders engaging in conduct which could mislead consumers. “If consumers experience similar issues they can contact the Office on 24616 or call in to the office. We are located at Mokolo Building third floor.” said Mr Hou’ua.
The CAPCD believes that Bulk Shop was likely to be in breach of the Consumer Protection Act. After completing a thorough investigation into this matter, the Division has issued a formal warning letter to Bulk Shop. Ultimately, only the Court can determine if a breach of the Consumer Protection Act has occurred.
Background
Engaging in conduct which misleads consumers is a breach of section 24 of the Consumer Protection Act. The maximum penalties for breaching the Act for a first offence is $10,000.00 or imprisonment for a period not exceeding one (1) year, or to both such fine and imprisonment. In addition, in the case of a subsequent offence, the fine is $20,000.00 or imprisonment for a period not exceeding two years or to both such fine and imprisonment.
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