The truth about supermarket deals

Rosalind Kent takes a closer look at some of the offers we're bombarded with at supermarkets to see if they're really all they're cracked up to be.

During a typical trip around the supermarket you are bombarded with a multitude of special offers, deals, sack loads of loyalty points, and other such generous promises. Are the supermarkets really being kind to their customers, or is it all just a cynical marketing scam?

This article will look at some of the most common deals, the value of loyalty cards, and what action is being taken by the authorities when these deals turn out to be misleading.

Loyalty cards and reward schemes

Of the major supermarkets, Tesco and Sainsbury’s are the only ones to offer loyalty cards, but both have come in for criticism for not offering value for money.

If you only use your points to get money off your supermarket shopping, it roughly equates to a discount of just 1%! However, if you use your points for deals and days out, they are worth much more.

My only criticism of these deals is that you have to jump through hoops to get them. To go on a hotel break using Tesco Clubcard you must do the following: enter the handy 12 digit code online for every voucher used, send off for the tokens, receive hotel tokens back, phone the hotel to book (fingers crossed they have got a room free), send the tokens via recorded delivery to the hotel, then receive a confirmation that the booking has gone through. Phew!

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You can’t book the hotel until you have received your tokens, so you don’t know the exact price you will be paying when you order the tokens. This means that it is wise to order slightly more. If you think your stay is going to be around £280, order £300 worth of tokens. Tokens will be sent in denominations of £100 so, for example, if the actual cost comes in at £290 you have to send three £100 tokens. Tesco clearly states that you don’t get any change, so you will have lost £10 of vouchers.

Asda does not have a loyalty card, but runs offers such as the Asda Price Guarantee. Customers receive a voucher if Asda is not at least 10% cheaper than competitors. However, the Advertising Standards Agency has just upheld a complaint against the guarantee for its lack of clarity. Some everyday items like milk, bread, fruit, vegetable and fresh meat, aren’t included, nor are various non-grocery items that are used in the advertising campaign.

The process of claiming is also a little involved, and it can basically end up being a lot of hassle for a very small voucher! Read more about it in Slash 10% off your food bill.

Offers and deals

Half-price goods must have been sold at the full price for 28 days in any six month period.

Investigations have shown that where the full price has only been used for a short time, the ‘half price’ amount is a more accurate reflection of the actual cost of the product. This can mislead customers into thinking they are getting a better deal than they are.

The cost increase in basic commodities has led to supermarkets reducing the size or weight of their product, but charging customers the same amount.

This has been done without fanfare, as you might expect, and often busy customers just aren’t aware of the change. It can be argued that shoppers should check the packs before buying, but many of these decreases are very subtle, and labelling is not always clear.

The main complaint with things like 2 for 1 deals is that the offer is sometimes not applied at the till, and it is not until you get home and check your receipt that you realise you have been charged twice. Often this is a genuine error by the individual supermarket, which has neglected to update its system, but if you find this is happening frequently at your local supermarket then tell Trading Standards, which will be able to take action.

What action is taken against dodgy ‘deals’?

When I worked for Trading Standards we performed spot checks and made test purchases on supermarkets to check for offences under legislation such as the Prices Act 1974 (for misleading consumers about prices, deals and offers), and the Weights and Measures Act 1985 (for selling underweight items). Trading Standards can bring criminal prosecutions against retailers under these Acts.

In reality, when discrepancies are found, Trading Standards will take a ‘proportionate’ approach. It is much more likely to give the supermarket a chance to rectify the problem. This does not mean to say that persistent offenders will ‘get away with it’ though.  

In January 2011 Trading Standards took Lidl to court. Lidl was fined £4,190 for using illegal weighing equipment which short-changed customers, despite having received frequent warnings about this practice.

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