The Chartered Trading Standards Institute (CTSI) recently published a refreshed version of its Guidance for Traders on Pricing Practices (2025 Guide). Released in August 2025, the update replaces the 2018 edition and reflects new legal obligations under the Digital Markets, Competition and Consumers Act 2024 (DMCCA). The 2018 guidance is now withdrawn, and traders are expected to align with the new online guidance.
Why This Matters
If your business sells to consumers – whether online, in-store, or via distance contracts – the 2025 Guide is key for you to understand. It applies to everything from supermarkets and airlines to estate agents and subscription services, and is relevant to marketers, legal teams, and compliance professionals alike.
The guidance is non-binding, but regulators including Trading Standards, the CMA, and the ASA may refer to it when assessing pricing practices.
The 2025 Guide is not just a reflection of legal reform. It is a practical compliance tool, designed to help traders understand and apply the DMCCA and related legislation in day-to-day pricing decisions.
Key Changes Since the 2018 Guide
1. Alignment with the DMCCA
The 2025 Guide is built around the DMCCA, which came into force in April 2025. It replaces references to the Consumer Protection from Unfair Trading Regulations 2008 as the primary legal framework. The 2025 Guide helps traders interpret and apply the DMCCA’s principles in real-world pricing scenarios.
2. Expanded Definition of the ‘Average Consumer’
The DMCCA introduces a more nuanced definition of the “average consumer”, recognising that vulnerable individuals may still fall within this category even if they are not “reasonably well informed, reasonably observant and circumspect” (DMCCA ss.246-247). This matters because traders must assess fairness by reference to the average consumer. The 2025 Guide explains how this standard applies in practice, particularly when assessing who is being targeted by a price promotion. For instance, a subscription offer aimed at students or pensioners may need to be assessed against a lower threshold of consumer awareness, especially where pricing terms are complex or deferred.
3. Stronger Focus on Artificial Urgency and ‘Free’ Claims
The 2025 Guide provides examples of urgency claims that are likely to mislead, such as falsely stating that a sale ends at midnight or that stock is limited when it is not. It also clarifies when a product can be described as “free”, emphasising that any unavoidable costs must be disclosed and that the free item must be genuinely additional.
4. Digital Transparency and Subscription Clarity
The 2025 Guide emphasises that traders must present material pricing information online in a clear and prominent manner. This includes the total price, any mandatory delivery charges, and key subscription terms such as contract duration, renewal conditions, and cancellation rights. Information must not be hidden behind clicks, scrolls, or secondary pages, nor obscured in small print. The Guide also requires traders to obtain express consent before charging for subscriptions and warns against practices that exploit consumer inertia or conceal renewal obligations.
5. Reference Pricing Scrutiny
The 2025 Guide sets out detailed criteria for internal reference pricing, such as “was/now” comparisons and RRPs. It explains how traders should substantiate claims, including maintaining records of previous prices, sales volumes, and promotional periods. The emphasis is on ensuring that any claimed price advantage is genuine and not misleading.
Deep Dive: Reference Pricing Under the Microscope
Reference pricing – such as “Was £100, Now £50” – is a staple of retail promotions. But the 2025 Guide makes clear that trust and integrity are paramount:
“It is unlikely that consumers will have made a record of the reference prices in order to determine for themselves whether the claimed price reduction is genuine.” (2025 Guide, p.16)
To comply, traders must ensure:
- The higher price was recently and genuinely charged.
- The comparison is made in the same store or platform.
- There is evidence of significant sales at the higher price.
- The reference price is not out-of-season or inflated.
The 2025 Guide provides examples of pricing claims that are likely to mislead, such as using RRPs that are not genuine or referencing prices that were never actually charged. Traders are expected to maintain clear records and ensure that any comparison reflects a fair and accurate picture of value.
Sector Spotlight: Retail and Subscription Models
Retailers and subscription-based businesses should take particular note. The guidance places new emphasis on clarity around recurring payments, requiring traders to ensure:
“…the extent of the consumer's financial commitment should be set out clearly and prominently from the outset, and the consumer's express consent to these additional payments should be secured before they are charged.”
This means no more burying renewal terms in the small print or relying on inertia to lock consumers into long-term commitments. Similarly, retailers must ensure that volume offers, multi-buys, and combination deals genuinely offer better value – and that consumers are not misled by pre-printed claims like “Better value” or “50% extra free”.
Comment: Strategic Compliance in a Post-DMCCA World
The 2025 Guide signals a shift from “common sense” advice to regulatory alignment. While still non-binding, it is now a compliance tool that reflects the CMA’s enforcement priorities and the ASA’s advertising standards.
For in-house teams, this means:
- Reviewing pricing promotions with legal and marketing input.
- Auditing digital platforms for transparency and accessibility.
- Documenting substantiation for all reference prices and claims.
Takeaway: Five Practical Tips for Compliance
- Include all compulsory charges upfront, even if variable.
- Avoid urgency claims unless the time limit is genuine and clearly stated.
- Do not use ‘free’ unless the item is truly free, with no hidden costs.
- Ensure reference prices are real, recent, and supported by evidence.
- Make subscription terms clear and secure express consent.
Note: The Price Marking Order 2004 is due to be amended in October 2025. The CTSI has indicated that the 2025 Guide will be updated to reflect those changes.
Need help reviewing your pricing practices or updating your promotional strategy? Howard Kennedy’s commercial team is here to help. Get in touch to discuss how the DMCCA and the 2025 Guidance may affect your business.
Want to hear more from us? 
