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Consumer Prices as advertised

Does anybody know which legislation says that for consumer goods, the prices advertised must be stated inclusive of VAT or at least state in small print "+ VAT".

The reason I am asking this is because Tesco recently advertised unlimited broadband package for £2.50 per month but it did not state that this price is exclusive of VAT.  Therefore, the actual price for a consumer is £3.00.  Now on top of this you also need to add the line rental of £13.75 + VAT.  Again the line rental was simply stated as £13.75 per month.  It did not state anything like "+ VAT".

The only reference for this is at this link: but it does not give any statutory reference.

BT prices are always inclusive of VAT; TalkTalk prices are also inclusive of VAT.

I migrated from TalkTalk to Tesco but now it has worked out more expensive than the package I had with TalkTalk.  To get out of the contract there is a stiff penalty of making up the lost revenue to Tesco of upto 1 years package.

Thanks to anybody who can reply swiftly.


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By shind01
28th Mar 2012 20:57

Correct link:



The correct link should be this:


Sorry for the error.



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29th Mar 2012 09:13

I quote from Which but I don't have the appropriate legislation. I assume you are a business in which case note the phrase in brackets 

Your right to know the total price

Retailers must display total prices clearly and accurately. Prices must include VAT (except in advertising aimed primarily at business customers) and any additional costs, such as delivery, must be clearly displayed. 

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29th Mar 2012 09:26

The original legislation is the the Consumer Prices Act. The following ectract comes from the DTI Code of Pratcice for Traders on Price Indications

I'm now stopping

Valued Added Tax

(i) Price indications to consumers

2.2.7 All price indications you give to private consumers, by whatever means, should include VAT.

(ii) Price indications to business customers

2.2.8 Prices may be indicated exclusive of VAT at an outlet or through advertisements from which most of your business is with business customers. If you also conduct business at that outlet or through these advertisements with consumers, however, you should make clear that the prices exclude VAT and you should:

(a) display VAT inclusive prices with equal prominence, or;

(b) display prominent statements that the quoted prices exclude VAT and state the appropriate rate. If should be noted that VAT inclusive prices for all goods offered by traders to consumers are required by the Price Marking Order 20046 (further information can be obtained from your local Trading Standards Service


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The Consumer Protection from Unfair Trading Regulations 2008

The legislation you're looking for is The Consumer Protection from Unfair Trading Regulations 2008.

The Which information that Bernard's referring to is HERE and includes a sample letter that you should write to your local authoritiy's Trading Standard's department.

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29th Mar 2012 10:10

Are you sure you've been billed correctly?  The offer they currently do on clearly states that prices stated include VAT.  It may be a billing issue rather than an advertising issue.


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