Prices, scanners and store signs
Prices
The government does not set prices. Stores are free to set their own prices.
Recommended retail price
A retail price may be "recommended" by the manufacturer or distributor of a product. However, businesses are not legally required to sell a product at the "Recommended Retail Price".
Price tags
In legal terms a price tag invites customers to make an offer to buy the product at or around the price shown. The store does not have to sell at the price displayed. If you cannot agree with the store on the price, you can always go elsewhere.
However, if a shop intentionally marked goods down at prices lower than it was prepared to sell, it could be accused of "bait advertising", which is against the Fair Trading Act 1987.
Ultimately, it is in the best interests of businesses to price goods accurately. This way they keep your goodwill and your custom.
Supermarket check-out scanners
Since fast price-scanning machines were introduced in stores and shops it has become harder for customers to be sure that goods have been rung up at the correct price.
For this reason, many grocery supermarkets have agreed to follow a voluntary code of practice on check-out scanners. The code is designed to re-assure customers and encourage efficient use of the technology.
Under the code of practice:
- Prices are changed on the shelf first, and then entered into the store's computer.
- If you are charged more than the shelf price, the code says you should get the item free.
- If you buy several identical items and are charged more than the shelf price, you can expect to get only one of them free.
Therefore, it is good shopping sense to check your receipt. You may get an item free.
Supermarkets that comply with the voluntary code of practice should display a sign and may have brochures explaining it.
For more information about the code, contact the Retail Traders' Association of Western Australia on 9365 7695.
If you are unhappy with a situation involving a store that has agreed to the code, the Association can review the matter, impose a fine on the store or order price tags to be placed on individual items.
"No refunds" and other signs
Signs saying "No refunds" are illegal and it is against the law for shops to display them. This includes signs that say:
- "No refunds on sale items";
- "No exchanges";
- "Repairs carried out at your own risk";
- "All care but no responsibility taken"; and
- "No responsibility for loss or damage".
This is because such signs suggest you do not have rights that the law clearly says you do have. Even if such signs are on display, you still have the legal rights outlined above.
More appropriate signs would be:
"Please choose carefully. No refund will be made if you change your mind after purchase."
"Refunds or exchanges will be made if the product you buy is defective."
The good news for consumers is that many retailers have adopted liberal refund policies. Put simply, they want your business and are prepared to exchange goods or offer credit notes as long as they make a sale. When you choose where to shop, it is worth considering the shop’s policy on exchanges.
We have free "Our refund policy" signs (that spell out the law in simple terms) for retailers who wish to use them.