The Price Marking (Amendment) Order 2024 (the “Order”) introduces several key changes to enhance transparency and clarity in how businesses display prices to consumers and aims to make it easier for consumers to identify and compare selling and unit prices of goods.
Background
What is the Price Marking Order?
The Price Marking Order 2004 (“PMO”) sets out the pricing information that a trader must include when offering goods for sale, whether in store or online, including the selling price and, where appropriate, the unit price. Goods offered for sale to consumers must have their selling price clearly indicated (which must be inclusive of VAT and any other compulsory charges or taxes). A unit price (i.e. the price per weight or volume) must be given when goods are either:
- sold loose from bulk, e.g., fruit and vegetables, meat, fish
- required to be marked with an indication of quantity or are made up in a prescribed quantity.
The purpose of the unit price is to enable consumers to compare similar items based on their cost.
Traders that fail to comply with the PMO can face prosecution resulting in significant fines.
In July 2023, the Competition and Markets Authority (CMA) published the findings from its review into how grocery retailers were displaying unit pricing information in-store and online and highlighted some problems with unit pricing which may affect consumers’ ability to compare products.
The CMA recommended changes to the PMO to make the display of unit pricing more helpful to consumers, including ensuring the PMO covered products with multiple prices due to reductions. Following this, the Department for Business and Trade consulted on potential changes and confirmed that it would reform the PMO to simplify compliance and improve information transparency for consumers.
What are the key amendments made by the Order?
The key provisions of the Order include:
- exclusion of deposits: deposits under the Deposit Return Scheme for single-use drinks containers are now excluded from the definitions of “selling price” and “unit price.” The deposit price should be clearly displayed separately
- legibility requirements: price indications including selling price, unit price, commission, conversion rate, or VAT changes, must be displayed in a clear and reasonably sized font
- multiple pricing: traders offering products at different prices (for example, standard vs. loyalty scheme prices) must display the selling price and the unit price for each type of price along with the applicable conditions for the different prices
- reduced prices: traders must show both the reduced selling price and the reduced unit price during general reductions
- revocation of Article 14: Article 14 of the PMO is revoked so that where products are sold by unit price, businesses are required to display prices per product in metric units (kilogram, litre, metre, square, or cubic metre)
- exemptions: certain goods, such as those which comprise of an assortment of different items, either sold as a single package, or where the assortment comprises a mixture of goods sold by weight and volume, or at different prices when sold outside the package, are exempt from unit price display requirements.
When is this happening?
The Order will come into force in England, Wales and Scotland on 1 October 2025.
What do I need to do now?
Retailers must ensure that loyalty and non-loyalty prices are clearly marked, conditions for loyalty prices are clear, as well as ensuring that all prices include VAT. There will also be changes to unit pricing with businesses required to display prices per product in metric units (kilogram, litre, metre, etc.).
The requirements of the Order will impact the space available on price labels and shelf edge labels in physical stores, as multiple unit prices may need to be displayed in certain situations – for example where products are offered with a promotional multibuy deal, the price label must show both the unit price for a single purchase and the unit price for the multibuy promotion.
Businesses should ensure that individuals in charge of pricing strategies and pricing displays receive updated training and are aware of the upcoming changes. The CMA is expected to monitor compliance and will be assessing the impact of these changes on consumer behaviour and market practices.
Disclaimer
This information is for general information purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given. Please contact us for specific advice on your circumstances. © Shoosmiths LLP 2025.