*The following is a message sent to Affiliate Window. They did not reply.*
Hi Affiliate Window, I want to ask a question about one of your merchants and their advertisments on Quidco & TopCashBack.
Other merchants have similar offers on both Quidco & TopCashBack, that run through the Webgains Affiliate network.
Your merchants’ cashack offers are based on ExVAT prices, Webgains’ merchants are based on IncVAT prices. What this means is, as an example, with Quidco your merchants’ 10% offer appears identical to similar Webgains merchants who offer 10% cashback, when in fact it is actually 16.66% worse. On a £100 (IncVAT) product purchase, consumers using your cashback deal get back £8.33. Consumers using a Webgains cashback deal of the same notional percentage get back £10.
TopCashBack (I asked them directly and they were polite enough to reply) tell me that the inclusion or exclusion of VAT is at the discretion of the affliate network or merchant.
I did a small amount of research, since I know your merchant supplies products primarily to the general public. They make no secret of this as their website states: “We only supply consumers, and do not supply other companies in the trade.”.
The DTi code of practice for traders on price indicators (October 2005) states:
Valued Added Tax
(i) Price indications to consumers
2.2.7 All price indications you give to private consumers, by whatever means, should
include VAT.
In addition, the HMRC website states:
Prices in advertisements, catalogues and price lists
Products advertised in outlets, magazines, on the internet, or shown in catalogues, price lists and other literature may be aimed at the consumer, businesses, or both. If they’re only meant for the general public, they’ll show you a price including VAT. This is a legal requirement.
(Source: http://www.hmrc.gov.uk/vat/sectors/consumers/basics.htm)
My question is, should the CashBack offers of your merchant be displayed based on ExVAT pricing? It seems deceptive and possibly illegal.
A reply would be greatly appreciated.