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| Quote: If they continue the habit, the OFT has the power to fine them up to 30% of their relevant turnover. Consumers shopping this coming weekend are being advised to ask the shops how long reference prices were used for and what percentage of sales were achieved at the higher price. 'Genuine prices' Earlier this week, Tesco was fined £300,000 for misleading customers over what it claimed were "half-price" strawberries | |
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Considering that Strawberries are apparently the biggest selling item in supermarkets the fine does seem small for Tesco's.
The fines are so small that they are simply an occupational hazard and built into the business model. All that the OFT has to do is fine a company so significantly up to its limit that the company goes under then it will send a message to every other company in all sectors. The fine could be renegotiated in the bankruptcy courts to allow them to restart but clearly directors will be booted out and that is what most of them worry about.