Frasers Group disputes regulator guidance on retail pricing

Frasers Group is engaged in a dispute with the Advertising Standards Authority (ASA) regarding guidance on Recommended Retail Prices (RRPs). The group’s CFO, Chris Wootten, issued an open letter claiming the regulator’s requirements are “unacceptably vague” and create “unreasonable and we say unlawful barriers” to price competition. Wootten argued that the current rules, which require traders to prove an RRP is a price “generally sold in the market,” could discourage retailers from highlighting legitimate discounts during the cost-of-living crisis.

In a separate development, the ASA banned an online advertisement for a Puma sports top published by Sports Direct, a Frasers-owned entity. The watchdog ruled the ad was misleading because the company could not provide sufficient evidence that the item was generally sold at the stated RRP of £45. This ruling follows the recent criticisms from Frasers Group leadership regarding the regulator's crackdown on discounting practices.

Additionally, Frasers Group owner Mike Ashley has criticized local government plans regarding business rates, warning that failure to address rising employment costs and business rates could lead to job losses in the retail sector.