Frasers CFO urges ASA to rethink recommended retail price guidance

In an open letter published by Frasers Group finance chief Chris Wootton, he argued that the ASA’s approach to recommended retail prices (RRPs) creates unlawful barriers to price competition, warning that it could discourage retailers from promoting discounts at a time when the cost-of-living crisis makes value-driven shopping more important than ever.

“I am writing to express my serious concerns as to the ASA's approach to RRPs, and the impact that is having on both retailers and consumers in creating unreasonable and we say unlawful barriers in the way of vigorous price competition in the market,” Wootton said in the letter, which was addressed to ASA Chair Baroness Morgan of Cotes and copied to Chief Executive Guy Parker.

Wootton asked the ASA to review its RRP guidance, describing its current position as “clearly untenable”.

Central to Wootton's argument was his positioning of Frasers Group as acting in consumers' interests rather than against them. He described the retailer as the "consumers' champion", focused on delivering the "best possible value to our customers".

He also drew a direct comparison between that positioning and the kind of pricing practices the Government has recently spoken out against: "We do not want to engage in 'rip-off discounts' or 'phoney bargains,' in the words of the Prime Minister's recent press release on 'everyday fixes' on the cost of living. We show bona fide discounts against genuine and realistic RRPs which we verify using our in-depth knowledge of the market for the wide variety of brands and products we sell," the letter said. 

Frasers disputes the ASA’s market test

Wootton argued that the ASA required traders to establish that the RRP is the "price at which the product is generally sold in the market", a test that was not found in, and goes beyond, the underlying law as defined in the Digital Markets, Competition and Consumers Act 2024. The CMA is a statutory government regulator and has in the past taken companies to court over misleading consumer practices. 

"This test is unacceptably vague, and makes it very difficult for traders to know whether use of an RRP will be permissible (the Guidance accepts that the 'generally sold' test can vary based on product and sector)," Wootton added. 

The non-binding guidance further notes that a manufacturer’s recommendation may not, by itself, provide enough evidence. Advertisers who cannot demonstrate that a product was actually sold at the quoted price risk having complaints upheld against them.

The letter argued that therefore the test puts a higher reporting burden on retailers, as they would be required to obtain market-wide sales information held by third parties for every RRP used.

Wootton added that the approach could prevent RRP comparisons for products sold by only one retailer or not yet launched. The ASA instead advises sole sellers to use previous-price comparisons, while lower launch prices should be described as introductory offers.

"At a time when the cost of living crisis is rightly at the forefront of public concerns, it seems extraordinary that the ASA seems intent on making it harder for traders to promote genuine price discounts to consumers, and in doing so is supporting retail price maintenance by brands and/or unfair anti-competitive arrangements," the letter said. 

Emma Sleep judgment supports Frasers’ case, CFO says

Wootton cited the High Court’s July judgment in the Competition and Markets Authority case against Emma Sleep, specifically. He said the decision established that reference prices should be assessed on whether they are genuine or realistic, rather than by applying a fixed proportion between sales made at the higher and lower prices.

His letter said that having few or no sales at a reference price would not, by itself, make it misleading. 

Frasers also used official England replica football shirts as an example of alleged retail price maintenance, claiming prices were uniform at £134.99 during the recent World Cup period. The letter alleged that retailer pressure and controlled distribution supported this pricing, but did not provide production-cost or sales data.

The issue has also affected football retail, with eight Premier League clubs raising prices for the 2026-27 season.

The intervention follows heavy retail discounting earlier this year. UK shop-price inflation eased to 1% in April, when stronger promotions helped reduce non-food prices as retailers sought to stimulate demand.

TheIndustry.fashion has contacted the ASA for comment.