Q. A retailer down street has been advertising a 'closing down sale' for over 12 months now with no sign of actually closing down. In fact, the shop is constantly being re-stocked and I wouldn't be surprised if they are already planning next year's closing down sale. Surely it can't be legal to be eternally closing down?
A. Consumers searching for bargains should not be misled by claims about closing down sales and any such adverts must accurately reflect a retailer's genuine intention to close their business premises. A retailer who holds a closing down or other sale which does not have an end date may be guilty of an offence under the Consumer Protection Regulations.
Furthermore, a closing down sale creates the impression that the consumer only has a short period of time to purchase goods or that only a limited amount of stock is available. A sale which continues for longer than 6 to 12 months is therefore likely to breach the advertising rules on Truthfulness and Availability of Products.
Retailers are operating in exceptionally harsh trading conditions at present and this had led to an explosion of sales promotions which aim to incentivize consumers to spend. Closing down sales, BOGOF offers (buy one get one free), free prize draws and competitions all help to stimulate trade and are all perfectly valid marketing techniques.
However, there is a regulatory maze for advertisers to navigate and they need to be very careful to ensure that any sales promotions do comply with the regulations. If you are a retailer or a consumer and you would like a copy of the relevant rules please email ks@bogof.com or ks@pgslaw.co.uk or alternatively please call on 0808 2317043.
