Consumer Advocacy Group Accuses Retail Giant of Deceptive Pricing Strategies
A consumer advocacy group has raised concerns that Sports Direct may be engaging in potentially illegal practices by making customers believe they are receiving significant discounts. This assertion comes after the group reviewed the pricing on a variety of items, including sneakers and sweatshirts, on the retailer’s website.
The organization, Which?, has reported Sports Direct to the Competition and Markets Authority, claiming to have discovered what it described as “questionable and dubious pricing strategies” being used online by the retailer.
During their investigation, Which? noted that many products on SportsDirect.com were listed with recommended retail prices (RRPs) that seemed deceptive, as these prices were not verifiable against other online sellers. This practice could mislead consumers into thinking they are securing a better bargain than they actually are.
A spokesperson from Which? expressed concerns that these findings might indicate violations of legal standards.
Which? initiated this investigation after some readers pointed out suspicious RRPs. The scrutiny involved 160 products from Sports Direct, which is part of Mike Ashley’s Frasers Group. This group encompasses a variety of brands including Jack Wills, Slazenger, Karrimor, Everlast, and Lonsdale.
It was also noted that Frasers Group owns several other retail outlets like USC, Studio, and Get the Label, which often seem to be the exclusive distributors of these brands, according to the consumer group.
The Advertising Standards Authority (ASA) defines RRP as the price at which an item is generally marketed, which led Which? to argue that consumers might perceive Sports Direct’s prices as exceptional deals in comparison to the standard market prices. However, Which? discovered instances where no other online retailers were offering the products at or above the reference price listed by Sports Direct, which brought the authenticity of these RRPs into question.
For instance, a Jack Wills hoodie was available for £24 on Sports Direct with a “manufacturer suggested retail price” (MSRP) of £54.99. Which? argued that MSRP, a less commonly used term, might be confused with RRP. Notably, this hoodie, under the Frasers Group brand, was not found on sale by any retailer other than those within the Frasers Group, selling for £40 on Amazon through Sports Direct, and £24 elsewhere.
In another case, Slazenger men’s tennis shoes were being sold for £32.99, nearly half of its MSRP of £64.99. The investigation by Which? revealed these shoes were available on eight different sites, but all were linked back to the parent company. Most listed them for £32.99 or £33, with only the official Slazenger site listing them at the MSRP.
The ASA has guidelines stating that if a marketer is the sole seller of a product and thus sets the price themselves, referring to the price as an RRP might not be permissible. However, Which? noted it was unclear if this rule applies when all sellers are under the same corporate umbrella.
When approached by The Guardian for a response, Sports Direct did not provide a comment for publication, according to Which?.
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