Product fraud?

[PGreen01]

Hi - can someone advise on the below please?

A large office supply business is selling identical consumables with different labels for different prices - specific example:

They have two types of floor cleaners - the standard version and a “premium plus” one which costs 30% more to purchase - however one of their employees (who I have a good relationship with) has advised that both floor cleaners are the exact same product with just different labels - are they allowed to do this?

If this is just a simple case of fraud and if it can be proven that it’s deliberate and systematic then is it a serious enough offence to risk an actual criminal prosecution? (The company is one of the largest in it’s sector with over 10,000 customers and supplies large businesses and organisations including the NHS and local authorities)

In addition there is widespread price discrimination - different pricing for different customers - more than 150% in some cases - is this just unethical or possibly illegal too?

Thank you for your feedback on the above

[echat11]

The ASA can look into these matter, fire off an email to them -

https://www.asa.org.uk/advice-online...arged%20online.

[PallasAthena]

The difficulty you will have is that all your information about this company's business practices appears to come from what sounds like social gossip from an employee.

Is the employee going to support you and publicly identify themselves as the source if you complain? I'd bet they won't. Dismissal would likely be the swift consequence for them.

That doesn't stop you complaining to the ASA although you will need to identify examples of actual adverts and where/when they they appeared.

Of course businesses can charge different prices to different customers. There's not, generally speaking, anything illegal about it. It's a standard practice as anyone buying a train or plane ticket could testify.

[PGreen01]

Hi - re the above - regarding proof - I have a copy of the published price list which lists the products and prices etc.

Regarding supporting evidence/testimony - it should be relatively simple to demonstrate that both products are identical (lab testing etc) - plus please assume that the employee referenced would be willing to provide a written statement (they should be protected by whistleblower rules)

Assuming the above - what do you think the likely outcome would be?

[atticus]

Please report back when you have the lab report following analysis of the two products.

[PallasAthena]

You and your friend need to do some research into whistleblowing law. A whistleblower is only protected for disclosures to a 'prescribed body'. ASA is not one, and making a disclosure to you is definitely not protected.

ASA deal with advertising claims, they don't carry out lab tests although lab tests you have commissioned could be submitted in evidence. Have you commissioned lab tests?

I can't see how price lists of products are evidence of wrongdoing

Nor can I understand what your motive is for getting involved in this. If your friend the employee wants to shop their employer for alleged wrongdoing (if it exists) why doesn't he do it himself? He's the one with the first hand inside knowledge, not you.

[islandgirl]

Supermarket own label and branded products often come out of the same pipeline...

[echat11]

Supermarket own label and branded products often come out of the same pipeline...

They do, but there is no doubt a difference in quality due to the ingredients used. It's like they intentionally make the product poor.

And no way is Heinz Tomato Soup worth £1.70 a tin (Ocado), that's just 'ridiculous'.

[islandgirl]

I believe they are often exactly the same product (not in every case of course) - and I agree re the soup!

[echat11]

I believe they are often exactly the same product (not in every case of course) - and I agree re the soup!

A few years ago - https://www.thesun.co.uk/money/88436...ent-packaging/