A mobile phone shop has been fined £2,500 for refusing to honour its pledge to compensate customers who brought the same product cheaper at another local store.

Link Stores Ltd was found guilty of breaching the Consumer Protection Act for giving a misleading price indication at its store in St AnnÍs Road, Harrow. A customer bought a mobile phone in February last year when the store was running a promotion which promised to refund the difference if the same product was being sold cheaper locally, Harrow magistrates heard on Thursday last week.

Three days later the purchaser noticed another store in Station Road selling the same phone for £20 less. But despite having written confirmation of the offer he was refused the refund because Link said its promotion did not include this particular competitor. An officer from Brent and Harrow Trading standards received the same response when he made a test purchase.

Link accepted the facts of the case but argued on legal grounds that the price indication was not misleading.

After the case, trading standards director John Taylor said: ñIt is the duty of businesses to ensure that they comply with their legal obligations and that they do not mislead consumers with any claims that they make.''