Price Marking

Consumer Protection Act 1987
Code of Practice for Traders on Price Indications
Price Marking (Food and Drink Services) Order 2003

The legislation above governs the price display requirements for restaurants, cafés, bars, takeaways etc. where food and drink is supplied with a service for immediate consumption. The purpose is to ensure the consumer is aware of the price before s/he places an order, and that good pricing practice is used so as to avoid giving misleading prices. The legislation does not apply to purely retails sales of food and drink.

How many prices must be shown?

The legislation sets out a minimum requirement for the number of prices to be displayed. There is nothing wrong in stating more, in fact we would recommend that you do. The minimum required is:

• If no more than 30 items of food and drink, other than wine, are available then the prices for all must be displayed
• If more than 30 items of food and drink, other than wine, are available then the prices of at least 30 must be displayed
• Where prices are displayed in categories on a menu (e.g. soups, fish, entrees, drinks) then at least five items must be shown in each category. If you have only four types in one category then list all four
• Soft drinks must now be categorised separately and at least five must be listed
• Wine, if sold for consumption with food, must also be categorised separately and the price for at least five types must be displayed. Where wine is sold withut food, for instance at a bar or pub, they need not be listed separately
• The price of every fixed price meal, such as a set three-course lunch or evening buffet service banquet, must be displayed in addition to the other prices required by the order
  
  

How should the prices be shown?

Prices should be clear and legible and positioned so that they can be easily read by intending purchasers. Several methods are commonly used, e.g. table menus and wall-mounted price lists.

Where must the prices be displayed?

This will depend on the type of business you run:

• For table service restaurants and cafés, the prices must be displayed so they can be seen before a customer enters the eating area. This may be via a menu displayed in the window
• For self-service restaurants and bars, the prices must be displayed at a place where the customer chooses his/ her food and drink. If the prices cannot also be seen before the customer enters the supply area, a further list of prices must also be displayed at the entrance to that area. Premises with large supply areas or with long bars will need several price lists to ensure customers are made aware of costs
• For take-away areas, prices must be indicated where the customer chooses his/ her food
  
  

All pricing information must be included on all menus or price lists, whether displayed inside or outside your premises.

Can VAT be shown separately?

No, all prices must include VAT.

What if I have other additional charges?

If your customers must pay a non-optional charge, e.g. service, cover or minimum charge, these must be shown on your price list with at least as much prominence as the prices of the food.

If you charge extra when customers use a credit or debit card you must prominently indicate that this is the case and give details of what those extra charges may be. Do not suggest optional sums, whether for service or any other item in the bill presented to the customer.

What should I do if a price is no longer valid?

If food is supplied generally, rather than during a particular period of the day, (for example in a café that is open throughout the day) and a particular food runs out then that price should be removed from display. This should be done as soon as is reasonably practicable after the food has become unavailable.

When food or drink is available only during a specific period of the day, (e.g. a lunchtime menu, happy hour), the price indications must be removed when the food or drink ceases to be available.

Can I display prices in other currencies?

Prices must be in sterling/ pounds. However if you advertise that you accept other currencies in addition to sterling then you must quote your prices in that currency as well, together with any commission you charge (e.g. "2% will be added to bills paid in Euros"). Alternatively you can provide clear information on the conversion rate you use so customers will know what they will pay if using an alternative currency.

You must make it clear that the rate will not apply to transactions made via a payment card, as commission etc. will be charged by the card provider. It is important to ensure that you do not give misleading information when offering the option to use alternative currencies.

What happens if I fail to comply with the above requirements?

You will be committing a criminal offence if you fail to give the price information as detailed above. You will also be committing an offence if you give customers misleading price information about the goods and services that you offer.

How can I get further advice?

This Code of Practice has been approved by the Department of Trade and Industry as a guide to good pricing practice and is available from the address below. A copy of the legislation may be purchased from The Stationery Office. Telephone: 0870 600 5522.

If you require further information, clarification or advice on any of the above, contact:

Trading Standards Service
Public Protection
222 Upper Street
London
N1 1RX
Tel: 020 7527 4028
Email: trading.standards@islington.gov.uk

In offering the above advice, this authority wishes to make it clear that only the courts can interpret the law.