Costa Coffee corrects pricing error following customer complaints

Chain apologises as regulator reminds retailers of legal duties

Costa Coffee says it has corrected a pricing issue in its Isle of Man stores after customers were being charged more than the advertised price.

Menus in some outlets had displayed both 'eat in' and 'eat out' prices, with the ‘eat out’ option typically listed as cheaper.

However, customers reported being charged the higher ‘eat in’ price regardless of whether they consumed items on site or took them away - with some also saying the prices charged did not match either amount shown.

One example included a chicken and bacon toastie, advertised at £4.15 to take away and £5.00 to eat in, but charged at £5.55.

In a statement to Manx Radio, Costa Coffee said: "We have looked into this and have since rectified the error that occurred, and now all pricing is correct in our stores across the Isle of Man. We apologise for any confusion this caused and ask that customers who were charged incorrectly speak to the store team or contact our customer services team."

The Isle of Man Office of Fair Trading also confirmed it had investigated the matter.

Manx Radio understands Costa Coffee said it changed its pricing structure in April, but overlooked updating the displayed pricing labels.

In a statement, the OFT said: "Businesses in the Isle of Man must comply with the Price Marking Act 1976 and the associated Price Marking Order, which require prices to be clearly, legibly, and accurately displayed. Displaying misleading or incorrect prices may constitute an offence under the Consumer Protection from Unfair Trading Regulations 2019."

However, the OFT added that while retailers are not legally required to honour an incorrect price where a genuine mistake has occurred, they are expected to take swift action to correct errors and avoid misleading customers.

The regulatory body says it investigates complaints relating to misleading pricing, offers guidance to businesses on their legal responsibilities, and helps them ensure compliance.