Retailers Inflating RRP

So I went to Harris Scarfe on boxing day yesterday to have a look at some kitchen appliances and came across this digital scale marked down from $159.95 to $29.95.

http://www.harrisscarfe.com.au/kitchen-%26-dining/kitchen-ac…

The OH had a look and thought wow a $130 reduction, must be a steal. I wasn't convinced that those were worth that much, so I hopped onto my phone and did a search on the brand. Wasn't surprised to find the manufacturer website showing a RRP of $89.95 for the exact same model.

http://morganware.com.au/shopexd.asp?id=927

Did not buy it in the end due to the blatant dishonesty, but this made me think whether this was even legal? I mean, people who do not research before buying will be attracted to the 'high discount of 81%', where in fact it was only a 67% discount. To me this is completely misleading and is a deliberate attempt to rip off unsuspecting customers.

Any thoughts?

Comments

  • The rrp is only a recommended price, it's not compulsory. Perhaps talk to ACCC about it regardless, because as you say, it's straight out deceptive.

  • The key thing is… Has it been offered for sale at $159, for a reasonable length of time, and have a significant number of units been sold at that price?
    It's the 'standard' price that is the most important thing when it comes to misleading pricing.

    RRP is meaningless…. retailers can charge what they want for a product.

  • Does rrp change over time? If a product has been around for a long time, the original rrp 2 years ago could be redicously expensive today, but still a rrp that he retailer could claim to be discounted from. TV's I would guesshave uultra high rrp if u bought a generation old tv.

  • Have a look at this forum Oz Bargain Mild Surprise

    Guess what, prices do go up, only to be reduced at a sale.

    The RRP is just a guide, retailers can sell for lower or a higher amount. (Apple seems to make their own exceptions, like the warranty)

    Also consider petrol pricing, what is the RRP on that ?
    Real estate actions, agents quoting lower expected prices to ensure a crowd.

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