This interesting e-mail came through recently to ValueIreland.com from a business person who is investigating providing price comparison in their particular market to try to show consumers that they actually do provide better value for money than their competitors.
I read, with interest, your article regarding a possible grocery price comparison site. It started me thinking about the legality of doing something similar in my own industry, on my own site.
I checked recently my pricing in comparison with my competitors and the so called discounters to discover that when all is said and done my prices are as good or better than the vast majority out there.
With every consumer now almost solely interested in price I think this would be worth shouting about.
My company enjoyed a reputation of having top quality products and service over the past couple of years but unfortunately, in a recession, people now associate this with being expensive which is simply not the case.
Obviously I will take legal advice about how I could show that my pricing is better than named competitors but I was wondering if you had any off hand info on the legality of showing price comparisons of similar or the same products on my website.
I would appreciate any assistance you may be able to provide me with, with the aim of offering savings to consumers.
I don’t have the legal specific expertise on this kind of thing, but I don’t believe there can be any problem if you were to report the prices of your competitors on your website.
I believe in advertising terminology this would be known as “comparative advertising”.
As far as I know, there was some recent EC regulations enacted in Ireland to cover “comparative advertising” – the EUROPEAN COMMUNITIES (MISLEADING AND COMPARATIVE MARKETING COMMUNICATIONS) REGULATIONS 2007 – details here.
This regulation is intended to prevent any comparative marketing communications which is misleading or confusing.
For this reason, I believe, if you were to gather your comparative pricing information and ensure that you present it accurately on your website, you shouldn’t have any problem. It might be a good idea to provide the time and date of the prices you’re using from your competitors as well – just in case they try to question where you got your information from. Even better, if you have photographs of the prices you’re using, there can be no misunderstandings (even if you just keep the photos in case any problems arise).
As you’ll probably have read in my comments regarding grocery price comparisons, the problem is to always make sure that the price information displayed is accurate and as up to date as possible.
I’m personally in favour of this kind of advertising but this isn’t something that’s been all that popular historically in Ireland, but is a whole lot more common in the United States. Maybe, if business people are starting to think like this one, we hopefully might see a bit more of it.