The Competition and Markets Authority (CMA) announced today that it has begun looking into unit pricing practices online and in-store in the groceries sector.
Unit pricing shows how much a particular product costs by weight or volume to help shoppers identify which products offer the best value.
Amid the cost of living crisis, the regulator highlighted the importance of shoppers being able to compare prices like-for-like. It noted that this, together with recent “concerns raised by stakeholders”, had led it to revisit the issue of unit pricing.
The new investigation follows the 2015 Groceries Super-complaint, where the CMA considered pricing and promotional practices in the groceries market and concluded that complexities and inconsistencies with unit pricing may prevent people from spotting which deal gives them the best value.
These included different interpretations of the legibility of unit prices amongst retailers, inconsistencies with how retailers present unit prices for similar products, and inconsistencies with how retailers present unit prices for products on promotion.
“We know that the increased cost of living has hit the pound in people’s pockets,” said George Lusty, Senior Director for Consumer Protection.
“That’s why we’re pressing on with this important grocery unit pricing work to ensure shoppers can more easily compare prices and make choices that are right for them.”
The CMA stated that its latest project will consider the following:
- If the unit pricing issues identified during the 2015 Super-complaint remain
- Compliance with the law by retailers
- Consumer awareness and use of unit pricing information
The regulator will provide an update on the investigation later in 2023.
Amid soaring inflation in the grocery market, consumer watch Which? has been calling for pricing and offers in supermarkets to be more transparent, and for budget line items to be widely available. Its Head of Food Policy, Sue Davies, said: “Grocery prices are a huge concern as households all over the country grapple with the cost of living crisis, so it’s timely and important for the CMA to be looking at whether prices are clearly and fairly displayed at the supermarket.
“We know poor, inconsistent and sometimes missing price information is a problem and that’s why Which? is campaigning for pricing transparency from supermarkets, so that shoppers can easily work out which products are the best value.”
NAM Implications:
- How long before the government appreciate that:
- …many consumers do not understand finance, let alone basic maths?
- …many consumers need reading glasses, but don’t realise it?
- …many retailers do not want to make like-with-like comparisons easier?
- Meaning that any breath-holding in anticipation of a solution to the unit-pricing issue…
- …might be better spent elsewhere.
- Don’t watch this space…
