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Spurious charge

12 April 2011
Issue: 4300 / Categories: Tax cases
Next Group plc (TC998)

Next Group plc produces the Next Directory a mail-order catalogue in two parts: the main book and the brochure. Until 2004 a charge was made for the main book but not the brochure. In summer of that year the company decided to introduce a charge for the latter publication.

Customers who received the brochure but did not place an order did not have to pay the £3.50 charge. A customer who did place an order would find on his or her next statement a debit of £3.50 for the brochure a further debit of £3.50 for what was then Next’s standard delivery charge and a delivery credit of £3.50 as well as the cost of the goods.

It was possible to avoid the delivery charge by having the ordered goods delivered to a Next store for...

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