TC09596 - [2025] UKFTT 00895 (TC)

The Appellant runs a promotion for customers; referred to as a “free fitting” offer, but which is structured as a discount to the price of the flooring purchased by the customer. The promotion only applies to retail customers. Business-to- business sales are dealt with differently. To qualify for the promotion, customers buying a carpet must purchase an equivalent amount of underlay (with a minimum of 20m2). If they do, then the Appellant discounts the price of the goods by an amount equal to what is estimated to be the cost of fitting the carpet; the estimate being based on prices that have been stated to the Appellant in advance by the fitters. The figure is an estimate because it is based only on the amount of carpet purchased, multiplied by the rate per m2 charged by the fitter.

The free fitting offer does not take account of any additional fitting charges occasioned by, for example, the need to fit the carpet to stairs or a landing - each of which is a more complex fitting operation - or moving furniture. The sales process is the same regardless of whether the customer purchases carpet or other types of flooring, such as laminate, vinyl or SPC flooring. The arrangements work in the same way whether or not the free fitting promotion applies; the difference being that in the latter case, the purchase price of the goods is discounted by the Appellant by reference to the estimated “basic” fitting charge.

By offering “free fitting”, the Appellant reduced the amount of franchise commission earned.