South Ayrshire Council - News

REID FURNITURE LTD PLEAD GUILTY TO MISLEADING CUSTOMERS

A local furniture supplier has pled guilty at Ayr Sheriff Court to misleading their customers over their adverts. Reid Furniture Ltd, of Arran Mall, Ayr was fined a total of £750 for three offences under the Consumer Credit Act 1974.

The court heard that a number of consumers had complained to South Ayrshire Council’s Trading Standards Service about an advert that they felt was misleading. They believed they were being offered four years interest free to pay off their credit for furniture but in reality were only getting three years. They also complained that they were being signed up for further credit facilities, which they didn’t need or ask for.

After an investigation Trading Standards Officers concluded the advert and Reid’s practices breached the Consumer Credit Act and referred the matter to the Procurator Fiscal at Ayr.

A Trading Standards spokesperson said, “The consumers clearly felt they were misled by the adverts and this is unacceptable. Adverts should be clear and consumers should receive exactly what the advert is offering.”

Reid Furniture also issued credit card facilities to customers when they did not ask for them. One consumer told Trading Standards that the sales assistant said that he had to take a card in order to get finance and there was no way of opting out. The customer was not pleased about this, but felt he had to sign up for the card to get his suite.

The Trading Standards spokesperson explained, “Customers should not have to take out a credit card in order to get finance. This should be an optional extra and must quite clearly be presented as optional.”

South Ayrshire Council’s Community Safety Convener, Councillor Hugh Hunter said, “The use of credit is a part of everyday life for most people. It is also a very competitive area of the market, particularly in the furniture sector. With the variety of offers available it is essential that retailers advertise in a fair and clear manner to avoid misleading the customer. Competition between businesses is healthy but it must also be fair.”

Councillor Hunter added, “In the same week as the Council launches its “Don’t hide from your debt” campaign it is unacceptable that customers were being forced into taking additional credit by signing them up for credit facilities over and above the finance they had agreed to.”

Consumers who feel they have been misled by any advert should contact Trading Standards at:

5/7 River Terrace
Ayr

February 2006