VRS9225 | Mail order traders: Agents’ own purchases (AOP): Goods for commission

Where customers use their accumulated commission to purchase further goods, some mail order companies give an additional 2.5% commission. Following the decision in the case of The Littlewoods Organisation PLC, CA [2001] EWCA 1542, the additional commission is not regarded as the consideration for the supply of the agent’s services. Therefore in all circumstances the additional 2.5% commission must be treated as a discount.