The OFT launches new advertising and pricing reviews
The Office of Fair Trading is set to launch two separate market reviews into advertising and pricing.
The first, which is due to be completed by spring next year, will focus on online behavioural targeting, according to reports.
However, the pricing study is expected to take longer and may not be released until summer 2010. It aims to look into pricing practices that “may potentially mislead consumers”, according to the OFT.
The second will cover all practices but will concentrate on online pricing, particularly reference pricing, which advertises a product with a much higher reference price compared to the sale price.
It will also cover time-limited offers that are only available for a certain period, such as “for one day only” deals.
The OFT’s senior director Heather Clayton said the studies would ensure regulators keep up to date “on how new pricing and advertising practices are emerging and evolving online”.