A total of five furniture and carpet retailers including Carpetright have agreed to change the way their offer price cuts and also commit to reference prices when they advertise price cuts for their products.

The five agreed to change the price cuts following a two year investigation by the regulator. The Office of Fair Trading said that they have agreed to change the practice and will now commit to fair advertisement for price cuts. The five retailers include SCS, Dreams, Furniture Village, Harveys and Bensons for Beds besides Carpetright.

The investigation had looked into reference prices used by retailers to advertise a bargain to shoppers, such as "Was £800, Now Half Price £400". The regulator did not give particular references but said that a higher prices is not fair or genuine. The OFT yesterday said it had closed its investigation and the retailers did not did not admit liability.

Gaucho Rasmussen, an OFT enforcement director, said, "We are pleased that these retailers have confirmed their commitment to using genuine price. It's a powerful marketing tool which, when used properly, provides a helpful and easy way to demonstrate to shoppers the value of discounts and savings."