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Shops Increase Price before Sale

By Iceland Review

Remarks made by consumers of false pricing in shops during sales to the Consumer Agency and the Consumers’ Association of Iceland have increased after the banking collapse in 2008. The January sales are currently on in stores in Iceland.

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An Icelandic shopping mall. Archive photo by Páll Stefánsson.

There are examples of stores increasing the price of their products shortly before the sales to make the discount price seem like a better deal, Morgunblaðið reports.

However, according to chairman of the Federation of Trade and Services Andrés Magnússon there may be a natural explanation to such pre-sale price increases.

“The exchange rate of the Icelandic króna has always fluctuated extensively and after the banking collapse it depreciated significantly while the price of raw material increased,” Andrés explained.

“We are very dependent on the price of supplies. For example, when the price of flour increases, the price of bread in Iceland increases too,” he elaborated. “Therefore, price increases aren’t necessarily false or conducted to mislead the customer.”

When asked whether some companies might take advantage of the situation to increase the prices of their products shortly before sales, Andrés said he doesn’t believe many companies would do such a thing.

“I’d like to believe that the vast majority of the members of our association comply with the law and aren’t trying to deceive their customers,” Andrés concluded.

ESA

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