Tesco accused of breaking law on pricing
Lack of unit costs on items included in Clubcard Prices scheme may leave shoppers worse off and break the law, Which? claims.
With the soaring cost of our food, it’s never been more important to get the best possible value when shopping at the supermarket.
However, one supermarket giant has been accused of employing tactics that pull the wool over the eyes of shoppers looking to make savings on their grocery bills, with suggestions that the antics may even be illegal.
Hiding pricing
A new investigation from Which? is damning of the pricing policy employed by Tesco, specifically around its Clubcard Prices scheme.
Which? has argued that the “unclear pricing” in the scheme is not only harmful to shoppers, it may actually be illegal.
The Clubcard Prices scheme offers lower prices on specific items to members of the Clubcard loyalty programme.
It’s a loyalty model that has been adopted by other supermarkets too, such as Sainsbury’s and Coop.
The issue stems from a lack of unit pricing on products included in the Clubcard Prices scheme.
So while you can see the overall cost, it’s left to you to work out how it truly compares to rival items when compared accurately.
Which? suggested that this could be classed as a “misleading practice” under the Consumer Protection From Unfair Trading Regulations 2008, since it can make it unnecessarily difficult to work out which is the cheaper of two items.
It added that unit prices could be classed as ‘material information’, and so would be needed in order to make an informed decision.
Which? gave the example of a Heinz tomato ketchup. The 700g bottle is on sale for £3.90 ‒ or 55.7p per 100g ‒ though this drops to £3.50 for Clubcard holders.
There is no mention of the unit cost, which is 50p per 100g.
Yet there is also a 910g bottle of the same product, at a price of £3.99 as standard, or 43.8p per 100g.
This isn’t included in the Clubcard Prices scheme, and is actually the cheapest per 100g, but shoppers may assume that the smaller bottle is better value since it’s part of the scheme.
The Tesco defence
Unsurprisingly, Tesco has hit back against the claims from Which?
The supermarket giant said that the suggestions were “ill-founded”, as it has sought advice and approval from the local trading standards office in Hertfordshire, where Tesco is based.
A spokesperson said: "Providing great value and clear pricing is really important to us, we are supportive of calls for greater clarity on the regulations in this area.”
Comparing apples and oranges
Determining whether Tesco is really breaking the law with its pricing approach is above by pay grade ‒ that will be up to the Competition and Markets Authority (CMA), as well as the courts, to work out.
However, what this issue does make clear is just how difficult it can be to truly compare prices when shopping around.
Unit costs are crucial if we want to make an informed decision about which product is going to be kindest on our bank balance ‒ the headline price is only relevant so far as the overall cost, rather than what we are actually getting for our money.
And if those unit costs are not made clear throughout, then shoppers are left having to make a best guess, leaving them at the risk of losing out.
We know that supermarkets do well out of this approach. In years past the CMA has had to take action against these firms for being sneaky with offers, like multi-buys where purchasing a single item would work out cheaper than a multibuy offer.
If supermarkets are able to dazzle and confuse shoppers, then ultimately they benefit from it.
That’s why it’s so crucial that when they step out of line, there are bodies and regulators like the CMA who are able to do something about it.
Engaging with our food shopping
However, it’s also important for us as individuals to take the necessary measures to keep our shopping costs as low as possible.
With food price inflation at the highest levels seen in more than four decades, we are all feeling the effects of higher costs at the supermarket till.
That’s why it’s important to work out ways that you can reduce that spending where possible.
Taking the time over your shopping, and comparing unit costs is clearly a smart move, but it may not be enough on its own. Taking advantage of loyalty schemes, discount deals and first-time delivery offers can all help you slash your supermarket spend.
Being willing to shop in different stores, rather than just the most convenient one, can also make a difference. We know that far more shoppers are heading to the likes of Aldi and Lidl precisely because they know they can get better value for money there.
As more shoppers make the switch, it will push supermarkets to go the extra mile in delivering tangible savings.
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