Frasers Group chief financial officer Chris Wootton has written to the Advertising Standards Authority (ASA) calling for it to reconsider its approach to recommended retail prices (RRPs), arguing that its guidance could make it harder for retailers to offer genuine discounts.

In a letter dated 28 August, Wootton said the ASA was creating “unreasonable and we say unlawful barriers” to price competition and accused the regulator of making it harder for retailers to promote discounts during the cost-of-living crisis.

“I am writing to express my serious concerns as to the ASA’s approach to RRPs, and the impact that is having on both retailers and consumers in creating unreasonable and we say unlawful barriers in the way of vigorous price competition in the market,” said the CFO.

“At a time when the cost of living crisis is rightly at the forefront of public concerns, it seems extraordinary that the ASA seems intent on making it harder for traders to promote genuine price discounts to consumers, and in doing so is supporting retail price maintenance by brands and/or unfair anti-competitive arrangements.”

Frasers says it uses “bona fide discounts against genuine and realistic RRPs”, which it verifies using its knowledge of the markets in which it operates.

Wootton argued that the advertising watchdog’s requirement for retailers to establish that an RRP is the price at which a product is “generally sold in the market” goes beyond the underlying law, placing a burden on retailers.

He also highlighted what he described as “perverse outcomes” under the guidance, including situations where an RRP could not be used for a new product or where a retailer is the only seller of a product.

The letter points to the pricing of replica football shirts as an example of what Frasers considers a more serious issue. Wootton said England shirts were priced at £134.99 “across the board” during the recent World Cup period, arguing that distribution practices can restrict competition and maintain higher prices.

Wootton called on the ASA to “carefully reconsider its approach and guidance in relation to RRPs”, saying the current position was “clearly untenable”.

Wooton’s message comes a mere day after Fraser boss Mike Ashley launched a similar attack on the government, calling its approach “delusional” and asking the PM to help turn around recently acquired Harvey Nichols.

Click here to sign up to Retail Gazette‘s free daily email newsletter