{"id":181073,"date":"2023-05-18T10:29:30","date_gmt":"2023-05-18T09:29:30","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=181073"},"modified":"2024-11-27T04:17:42","modified_gmt":"2024-11-27T04:17:42","slug":"legal-pitfalls-of-price-matching-with-other-uk-online-businesses","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/ecommerce-online-business\/legal-pitfalls-of-price-matching-with-other-uk-online-businesses\/","title":{"rendered":"Legal Pitfalls of Price Matching With Other UK Online Businesses"},"content":{"rendered":"<p><span style=\"font-weight: 400\">Price matching is a common practice amongst UK e-commerce businesses. It involves matching the prices of competitors to remain competitive and attract customers. It is true that price matching can be a helpful strategy for UK online businesses. However, several legal pitfalls accompany this type of competitive pricing that your business should consider. This article will explore the problems of price matching with other online businesses.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">1. Anti-Competitive Behaviour<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Among the legal pitfalls of price matching is the potential for collusion or anti-competitive behaviour.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">UK competition law prohibits businesses from colluding with competitors to fix prices or restrict competition. Price matching with competitors can be evidence of collusion. This is particularly true if:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the prices are set at a certain level; or\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">there is an agreement between companies to match prices.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Any breach of UK competition law can result in heavy fines and damage your company\u2019s reputation.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400\">2. Price Discrimination<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Another legal pitfall of price matching is the potential for price discrimination. UK discrimination law prohibits businesses from discriminating against customers based on specific characteristics, such as gender or age.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Price matching could be seen as evidence of discrimination. Especially if specific customers are being offered lower prices than others and the reason for the price difference is not apparent. For example, suppose you offer over-50s higher prices when shopping for particular items. This might be discriminatory. Furthermore, news of this may harm your reputation and hurt existing customer loyalty.<\/span><\/p>\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    <script>\nvar 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Intellectual Property (IP) Infringement<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Price matching can lead to issues with IP rights. UK businesses are required to respect the IP rights of others, including trademarks and copyrights.<\/span><\/p>\n<p><span style=\"font-weight: 400\">If your online business matches the prices of a competitor with a registered trademark or copyrighted material, it could infringe on their IP rights. As such, you should ensure that your pricing strategy is yours rather than one that copies the same price point for identical or similar products.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">4. Contract Law Issues<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Price matching can also lead to issues with contract law. UK businesses must comply with contract law, including the terms and conditions of contracts with supplies and customers.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Suppose an online business&#8217;s marketing strategy involves matching a competitor&#8217;s prices with a different set of terms and conditions. In that case, it could be breaching its own contracts and potentially exposing itself to legal action.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">5. Misleading Advertising<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Finally, price matching can sometimes constitute misleading advertising. If your online business advertises that it will match the price of a competitor\u2019s product, you must ensure that the terms and conditions of the offer are <a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/risks-long-confusing-terms-conditions\/\">clear and transparent.<\/a>\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">For example, you can state that you will match any product&#8217;s price but, upon a potential customer identifying a lower price elsewhere, refuse to do so. To avoid this, you should identify all exclusions within a written price match policy.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Any failure to do so could result in complaints to regulatory bodies such as the<\/span><a href=\"https:\/\/www.asa.org.uk\/\"> <span style=\"font-weight: 400\">Advertising Standards Authority (ASA)<\/span><\/a><span style=\"font-weight: 400\">, which could result in legal action against your business.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">What Can My Business Do to Avoid These Risks?<\/span><\/h2>\n<p><span style=\"font-weight: 400\">To avoid these legal pitfalls, your online business should take several steps when engaging in price matching:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Firstly, ensure it is not engaging in anti-competitive behaviour or collusion with competitors by conducting market research to ensure the prices being matched are based on market rates rather than being fixed by agreement with competitors;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Secondly, ensure that price matching is not discriminatory by offering the same right to all customers or, alternatively, by providing clear and justifiable reasons for any price differences;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Thirdly, you should ensure you are not infringing on IP rights by conducting research on the trademarks and copyrights of competitors and ensuring your products and services do not infringe on these rights; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Fourthly, you should comply with contractual obligations by reviewing the terms and conditions of your contracts with suppliers and customers and ensuring that any price matching does not breach those terms; and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Finally, you should ensure that the terms and conditions within any advertising of \u2018price matching\u2019 are clear and transparent and are delivered to customers.<\/span><\/li>\n<\/ol>\n<h2><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n<p><span style=\"font-weight: 400\">In conclusion, while price matching can be a helpful strategy for UK online businesses, it is essential to be aware of the potential legal pitfalls that can arise. In certain circumstances, price matching can lead to a race to the bottom in pricing, ultimately damaging your UK online business&#8217;s long-term sustainability and profit margins.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">If you constantly reduce prices, you may not profit enough to invest in your company\u2019s growth and development. Consequently, this can reduce the quality of your service and affect your company\u2019s reputation and success.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Naturally, it is worth obtaining expert advice on the long-term sustainability of any price-matching practices to consider whether regularly reducing prices is the best strategy for growth and success. After all, sometimes the best price is not the lowest price.<\/span><\/p>\n<p><span style=\"font-weight: 400\">If you need help guarding against unsafe price-matching practices, our experienced <\/span><a href=\"https:\/\/legalvision.co.uk\/services\/ecommerce-online-business\/\"><span style=\"font-weight: 400\">e-commerce and online business lawyers<\/span><\/a><span style=\"font-weight: 400\"> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <\/span><a href=\"https:\/\/legalvision.co.uk\/membership\/\"><span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1684402025022\"><strong class=\"schema-faq-question\"><strong>Can price-matching strategies help attract new customers?<\/strong><\/strong> <p class=\"schema-faq-answer\">This type of pricing model is popular due to its success in persuading consumers that they are getting the best deal. However, some small businesses get into trouble using wide-scale exemptions (like refusing to match prices with items on &#8216;sale&#8217; on other sites).<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1684402032766\"><strong class=\"schema-faq-question\"><strong>Can we limit price matching to UK online retailers only?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes, limiting your company&#8217;s price match strategy to applying to rival UK websites rather than retail stores or businesses in other countries is possible.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/181073\" \/>            <input value=\"https:\/\/legalvision.co.uk\/ecommerce-online-business\/legal-pitfalls-of-price-matching-with-other-uk-online-businesses\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"Legal Pitfalls of Price Matching With Other UK Online Businesses\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Price matching is a common practice amongst UK e-commerce businesses. It involves matching the prices of competitors to remain competitive and attract customers. It is true that price matching can be a helpful strategy for UK online businesses. However, several legal pitfalls accompany this type of competitive pricing that your business should consider. This article<a href=\"https:\/\/legalvision.co.uk\/ecommerce-online-business\/legal-pitfalls-of-price-matching-with-other-uk-online-businesses\/\">Continue reading <span class=\"sr-only\">&#8220;Legal Pitfalls of Price Matching With Other UK Online Businesses&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13349,"featured_media":598,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"1621,174081,498,172706,173692,180813","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[34],"tags":[21,379,1352],"class_list":["post-181073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ecommerce-online-business","tag-medium-business","tag-ecommerce","tag-online-shopping"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast 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He has particular expertise in Commercial and Employment litigation, as well as data protection and privacy regulations. He is a qualified Solicitor in England and Wales and has a decade of legal experience, including advocacy within civil courts and Tribunals. Tom specialises in civil and employment litigation. He has extensive experience in advising employers and companies as to the requirements of employment law and data protection rules, as well as day-to-day advice on smooth running from a commercial perspective. Qualifications: Professional Skills Course - Law, University of Law; Legal Practice Course - Law, College of Law; Bachelor of Laws, University of Southampton.","sameAs":["https:\/\/www.linkedin.com\/in\/tom-sutherland-72b4509b\/"],"url":"https:\/\/legalvision.co.uk\/author\/thomassutherland\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/ecommerce-online-business\/legal-pitfalls-of-price-matching-with-other-uk-online-businesses\/#faq-question-1684402025022","name":"Can price-matching strategies help attract new customers?","acceptedAnswer":{"@type":"Answer","text":"This type of pricing model is popular due to its success in persuading consumers that they are getting the best deal. However, some small businesses get into trouble using wide-scale exemptions (like refusing to match prices with items on 'sale' on other sites).","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/ecommerce-online-business\/legal-pitfalls-of-price-matching-with-other-uk-online-businesses\/#faq-question-1684402032766","name":"Can we limit price matching to UK online retailers only?","acceptedAnswer":{"@type":"Answer","text":"Yes, limiting your company's price match strategy to applying to rival UK websites rather than retail stores or businesses in other countries is possible.","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/181073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13349"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=181073"}],"version-history":[{"count":4,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/181073\/revisions"}],"predecessor-version":[{"id":191563,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/181073\/revisions\/191563"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/598"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=181073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=181073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=181073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}