SHOPPING RIP-OFFS

Holidaymakers expecting duty free bargains at Britain's airport shops are in for a shock, sky high prices can make the goodies four times dearer than the High Street. Travellers expect top discounts on gadgets, books, cosmetics and chocolate before they fly because there's no mark-up for VAT. But most buyers are better off at their local supermarket. The greediest airside cash grab was at WHSmith, where the price of 200 gram bags of Haribo sweets has really taken off.

Suckers are fleeced £2.29 a pack, hard to swallow when they're just 50p in Asda. And a large 440g Toblerone bar costs a fiver at the World Duty Free chain but only £2 at Asda. Amazingly HMV charges air passengers more for The Band Of Brothers complete series Blu-Ray DVD than it does on its own website open to anyone. Pay £21.23 at the airport but online it's £15.99 including free postage.

With 40% of travellers still shopping at the airport, consumer watchdog Rebecca Leach of Which? Holiday warned, "Don't assume duty free shops are the cheapest. Check internet or High Street prices first." Cigarettes and alcohol are mostly still cheaper at the airport, although you still have to pay the duty unless you fly outside the EU. But Mintel retail expert Neil Mason said that at Christmas supermarkets can even undercut the booze prices. (Source: News of the World, Aug/10)

Food companies are serving up a raw deal for shoppers, slyly shrinking pack sizes while keeping prices the same. Popular brands like McVitie's, Muller, and Pot Noodle have cut pack sizes by up to 14%, as they maximise profits in the recession. Analysts say shoppers are very quick to spot price increases, but less likely to notice they're getting less in their baskets. An investigation by grocery comparison site mySupermarket.co.uk uncovered hundreds of everyday items that had been cut in size in the past year, without a fall in price. The four main online grocery retailers, Tesco, Asda, Sainsbury's and Ocado, shows, for example, that McVitie's strawberry mini croissants now come in packs of six instead of seven, yet still cost £1 at Tesco. Beef & Tomato flavour Pot Noodle tubs have shrunk from 96g to 90g, while rising in price from 85p to 87p at Sainsbury's.

And Muller Original Rice Desserts have been downsized from 200g to 190g while staying at 54p in the same store. Supermarkets are also cutting the size of many own-brand goods. Jonny Steel, from mySupermarket. co.uk, said, "Shoppers will feel hard done by." And Which? chief policy adviser Sue Davies said, "This is a growing trend and something consumers need to look out for." A spokesman for McVitie's said, "We decided to change to a six pack of croissants to achieve a £1 recommended selling price." A Muller spokesman said, "In the current economic climate, we felt it more appropriate to make a small change to the weight rather than increasing the wholesale price to retailers." Some manufacturers claim to have cut their recommended price along with the pack size but say prices in store are decided by the supermarkets. (Source: News of the World, May/10)

SUPERMARKETS
Supermarket "three-for-two" and kilo discount offers can save shoppers only a few pence, according to a survey by consumer magazine Which? They are designed to tempt people into buying more than they want and in some cases the deals actually cost MORE than buying items individually. One Asda deal offering "three for 99p" pasta shapes saved just 3p and a similar Sainsbury promotion for one-litre bottles of tonic and soda water saved only 6p. An Asda promotion for three two-litre bottles of soft drink was 18p dearer than buying the bottles individually. Granny Smith's apples at Asda were 96p in 1kg bags while the loose version were £1.07 a kg. Tesco's "save £1 per kilo" on pre-packed broccoli worked out at £2.99 per kg but loose broccoli, without a discount, was just £1.58 per kg.

Even buying bigger packs and more bottles, believing they represent good value, can cost punters extra. A 200g jar of Tesco's Classic coffee cost £2.20 but two 100g jars of the same product cost 88p each, a total of £1.76. Another ploy is to inflate the price of certain products for 30 days then cut them, giving the impression of a great bargain. Tesco doubled the price of a 24-pack of beer for a month then halved it, announcing a huge saving. In the past 17 years, the real price of food has gone down, staying well below the rate of inflation, yet we spend 25% more on groceries. Tesco spokesman John Church said, "The key thing is transparency. We don't pretend promotions go on for ever or that prices don't ever go up, they do." Doesn't really answer the question though does it? He should be a politician.

HOLIDAYS
UK travel companies are adding hidden extras to flight and holiday prices, in direct contravention of the rules on advertising. A holiday which the company offering it said cost as little as £39 actually cost £105. Phil Evans, principal policy adviser at the Consumers' Association, advises avoiding package holidays altogether. "Unbundle it yourself. Do your own research and you can often book it cheaper."

CAR RENTAL
Transaction fees, insurance waivers, credit card charges, an array of surprise penalties. Car rental is a byword for hidden charges that can catch out even the most astute customer. One customer was charged £20 simply for the pleasure of picking the car up. "There's a hell of a lot of small print with car rental," says Mr Evans. "So, try to examine it in advance when you have time. Avoid disputes over the condition of the car when you return it by photographing the vehicle to prove that you have not put any dents in it. Sean O'Grady, motoring editor of The Independent, says that arguing the price at the end of the transaction has always resulted in a reduction.

BANKS
Banks have a knack of imposing an array of hidden charges. This often creates further problems, punitive fees for an accidental overdraft can add up to £80 a month. When choosing a financial product check when penalties start kicking in. Shop around for the best rates and lowest charges, using a website such as www.moneysupermarket.com. If you are taking out a personal loan, opt for one that doesn't charge a penalty if you repay the money early. And with mortgages, ask for your money back if a lender charges a penalty for not buying their buildings insurance.

MOBILE PHONES
Mobile phone companies benefit from the complexity surrounding the myriad of deals and tariffs available. Mr Evans's first rule is - do your research before you sign up for a mobile. "Don't be lured by some offer of 2p a minute. And don't walk in to a store and expect impartial advice. Get your information in advance. Look at brochures, and check websites. Also think about how you are going to use your phone. If it's to keep in touch with a small number of people, try and be on the same network. Don't be dazzled by functions you are not going to use." Beware also of the cost of using your mobile abroad.

THEATRE BOOKING FEES
Booking agencies say they are providing a "service" and need to recoup their costs. But even booking over the internet - ie, doing all the work yourself - provided no escape from this hidden charge. One way of avoiding paying more than the face value of the ticket is to book it in person. But some shows have no in-person booking facility. There's no such thing as shopping around. If there's a show you want to see, then that's the show you'll book for. "We feel this is one for the regulators," says Mr Evans. "The Office of Fair Trading needs to look at this." Complain to the OFT and complain to your MP, Mr Evans adds. "Objections from the public can only help."

RESTAURANTS
A scam perpetrated by many restaurants is the practice of including a 10 or 12.5% service charge on your bill and then inviting you to fill in an empty "gratuity" box on your credit card slip. "A complete no-no," says Mr Evans. This still doesn't address the problem of service that is included. Remember, you don't have to pay it. If you think the service wasn't up to scratch, you definitely shouldn't. "Subtract it from the total," says Mr Evans.

COMPUTERS
Shoppers in Britain are being rippped off with computers, software, digital cameras and iPods costing up to double the US price. While Intuit Quickbooks Pro software is £270 here, it is £130 in the US. The UK price for an HP Ipaq HX4700 handheld computer is £390 but only £323 across the Atlantic and a 30Gb Apple iPod, which costs £230 here, can be had for £188 there.

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