Searching for price and quality in an inflationary environment - Gulf News

A resident for 18 years in the country said authorities should force retailers to declare any rise in prices for a certain period and let consumers decide whether to buy or not. "Why are the retailers not asked to announce the rise in prices along with the regular prices as they do at the time of sales when they declare the regular prices along with the reduced ones," he said. He complained about deceptive pricing and advertising in the market such as making incorrect price comparisons with their regular prices, or offering something that is supposedly free but in fact has a cost.

Ebrahim K. Ahmad, an engineer, echoed the view and said consumers cannot easily track changes in prices. But, with the retailers announcing the regular and the increased prices, consumers will not be misled.
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Speaking of other market malpractices, Ahmad said sale price is also misleading unless the former price is the actual one at which the trader offered the commodity.

"Sometimes unscrupulous retailers buy special consignments of substandard goods especially for a sale. They also buy a discontinued product-line at a deep discount and pretend customers are getting a bargain. Other retailers offer free products or services, but they are not really free because retailers normally charge less for such type of products or services. Besides, when customers get free products, some of the perks that go with the products are cut."

Ahmad said consumers, who buy a product following a deceptive advertisement, should have the right to sue the advertisers demanding a refund and damages.

These are thoughtful and observant remarks. However, the gentlemen should be careful what they wish for.

If we make the government our agent to police price changes there can be loads of adverse unintended consequences. I will highlight just one. It is likely that we are all better off if each buyer operates by the rule "buyer beware." If we all stake our lives on government watching price and quality, then sellers will likely be able to engage in more fraud and deception, not less. Think about it.