Shoppers warned on euro rip-off

UNSUSPECTING shoppers who face hefty charges from UK stores for paying in euros will have no recourse against the retailers. It appears that shops can use whatever exchange rate they like for converting euros into pounds. So far, some have charged up to 7p, or 11%, above the market rate.

No retail body has produced a guideline on charges, and the Government's euro preparations do not include any guidance to the consumer on what is considered acceptable.

Neither the Treasury, which has spent £9.9m on euro preparations, nor the Bank of England seem interested in what happens at store counters.

The Government's preparations are focused on business, and the consumer section of its fifth euro report in November is mainly a description of the changeover process, followed by pictures of the notes and coins. That means that the most effective sanction for customers unhappy about charges is to try another store.

The Consumers Association's European Union adviser, Stephen Crampton, said: 'We are not calling for legislation. Retailers who look for a way of making money out of this are being stupid and greedy and customers will go elsewhere.'

He warned shoppers to be 'vigilant' and look around for the best rate. The Trading Standards Institute issued a 'strong warning' for customers to check the exchange rate. It will prosecute if 'there is deliberate intention to mislead the consumer'.

The British Retail Consortium said: 'Charges are a matter for individual companies'. Jeweller Signet said retailers will not try to make money out of euro transactions. 'There is no advantage from trying to make a profit out of currency trading. Retailers just want to cover their costs,' said Signet's euro co-ordinator, Steve Card.