Prime Minister Andy Burnham has confirmed the first in a series of “everyday fixes” designed to ease the cost of living crisis: a ban on fake discounts and misleading pricing practices in retail. The crackdown, reported by the Guardian, targets tactics such as invented “was” prices, fake reductions, and misleading recommended retail prices, ensuring that advertised discounts are genuine.
What the new measures include
Under the new policy, retailers will be prohibited from using pricing practices that make discounts appear more attractive than they actually are. This includes fake “was” prices, where an item is listed at a higher price for a short period solely to justify a discount, and misleading recommended retail prices that are not based on actual market rates.
Mr Burnham, who is also the MP for Makerfield, said: “We won’t be able to solve every frustration overnight. But where the government can save people money, remove an unnecessary obstacle or simply make something work better, we should and we will.”
The Prime Minister added in a written statement: “If something is advertised as half price, it should actually be half price. We’ll make sure that when families snatch a deal, they can be confident they’re actually saving. That’s the least they deserve when budgets are so tight.”
Protection for vulnerable consumers
The announcement has been welcomed by consumer and mental health advocates. Helen Undy OBE, Chief Executive of the Money and Mental Health Policy Institute, highlighted the particular challenges faced by people with mental health problems.
“It can be hard for anyone to spot a misleading discount, but this is particularly difficult for people with mental health problems who can struggle with concentration, impulsivity and decision-making, which can make it harder to resist pressure selling tactics and compare prices to get a fair deal,” she said.
Undy noted that this group is disproportionately affected by the cost of living crisis: “People with mental health problems are three times as likely to currently be behind on some or all household bills – so it’s good news that the government is taking action to help tight budgets go further, and it’s important that it happens quickly.”
Subscription traps to be addressed
In addition to fake discounts, the government will bring forward protections against subscription traps – where consumers are signed up to recurring payments without clear consent or find it difficult to cancel. Undy said: “It’s also encouraging to see that the subscription trap protections will be brought forward. We know that the symptoms of mental health problems such as increased impulsivity and memory problems, can contribute to someone signing up without realising and forgetting about a subscription.”
She added: “We’ve long argued that it should be as easy to cancel a subscription as it is to sign up – and as ever the proof will be in how companies put this into practice.”
Broader impact and next steps
The crackdown is part of a broader package of “everyday fixes” that the government plans to implement over the coming months. While the full details have not yet been published, the Prime Minister’s commitment signals a more interventionist approach to consumer protection under his leadership.
Undy cautioned that these measures are only a start: “Today’s announcement is good news – however, subscription traps and misleading discounts are only the tip of the iceberg when it comes to unfair practices that make it harder to get a fair deal when you’re struggling with your mental health. We look forward to working with the government to see what further action can be taken in future.”
The ban on fake discounts is expected to be enforced by trading standards authorities, with penalties for retailers who breach the rules. Further details on implementation timelines and enforcement mechanisms are anticipated in the coming weeks.
