The law and selling online
How to ensure your online sales promotions are compliant
If you sell goods, services or digital content online to consumers in the UK, you must ensure that your online sales promotions do not mislead consumers or give a false sense of a deadline. Such sales promotions are known as price reduction claims and urgency claims.
What is a price reduction claim?
A price reduction claim example includes using comparison prices to highlight a special offer - ‘now £80, was £150' - when the higher price does not reflect the usual price. In that instance, it can give a deceptive impression of the price advantage the consumer will benefit from if they buy now.
Another example of misleading price promotion claims is omitting or hiding information consumers need to know upfront. A claim such as '50% off everything' on a website homepage and other advertising channels may fail to clearly state terms and conditions, such as spending a certain amount to qualify for the offer.
What is an urgency claim?
An urgency claim can be a countdown clock highlighting when a sale or special offer will finish. For example, ‘ends in 2 hours 10 minutes’, but when the time runs down, the promotion does not end.
Another example of an urgency claim is to tell consumers stock levels are low - eg ‘only five items remaining' - when there is no stock shortage or new stock will be available soon.
Making your online sales promotions compliant
You should review your online practices to ensure they meet the requirements of consumer protection law and make changes if needed. As part of your review, you should:
- look at all online activities including advertising, website and apps
- ensure anyone working on the claims for your online activity understands the legal requirements
- keep records as evidence to verify the claims you make
- ensure price promotions are verified, special offer prices end when the promotion ends, and online advertising is correct
If you sell products or services on an online marketplace, ensure the information you get from third party sellers is correct.
Businesses that trade with individual consumers should also be aware of the Consumer Protection from Unfair Trading Regulations.
Review examples and read the Competition and Markets Authority guidance on urgency and price reduction claims.