Tesco has been reported to the Competition and Markets Authority (CMA) by consumer watchdog Which? over its alleged failure to provide detailed pricing information on its loyalty card offers.
Which? stated that Tesco’s policy not to include unit pricing – such as per 100g or 100ml – on its Clubcard Prices deals could, in some cases, be a “misleading practice” under consumer protection regulations. It noted that the lack of unit pricing made it difficult for shoppers to determine which was the best-value product.
Which? highlighted the example of a 700g bottle of Heinz ketchup in Tesco for which the label showed the standard price to be £3.90, or 55.7p per 100g. A Clubcard banner showed the same size bottle on offer at £3.50, but the unit price, which would be 50p per 100g, was not given. At the same time, a 910g bottle of the same ketchup on the shelf below was priced at £3.99, or 43.8p per 100g. This was not on offer, but it was the cheapest option per 100g. Which? argues that some shoppers would wrongly assume the Clubcard option was the best value deal available.
Earlier this year, the CMA began looking into unit pricing as part of work to support consumers during the cost of living crisis. It recently announced it was stepping up its probe into food prices amid claims that retailers and manufacturers could be profiteering during the inflation crisis.
Sue Davies, the head of food policy at Which?, commented: “Tesco’s unclear Clubcard pricing is at best confusing for shoppers struggling with soaring food inflation and at worst could be breaking the law.
“This is simply not good enough from the UK’s biggest supermarket. Tesco should think of its customers and act now to introduce clear unit pricing on all offers, including Clubcard promotions, so shoppers can easily find the best value items.
“We expect the regulator to look at unit pricing on the growing number of supermarket member price schemes as part of its review. At this time of crisis, supermarkets cannot cut corners. They have a duty to ensure pricing is clear so that customers can get the best value.”
Tesco responded by stressing it complied with all regulations and that its Clubcard pricing approach had recently been approved by Trading Standards. “They formally endorsed our labelling, confirming it meets the current legal requirements and guidelines,” a spokesperson said.
They added: “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, in the interests of both businesses and consumers, and are actively looking at how we can make the way we display pricing even clearer for our customers.
“However, given that we are complying with all the current rules, we are disappointed that Which? has chosen to make these ill-founded claims against our Clubcard Prices scheme, which helps millions of households get great value week-in, week-out.”
Asked for a response to the Which? complaint about Tesco, the CMA said it expected to publish its wider report on unit pricing in late July, which will include any recommendations for the government.
NAM Implications:
- The only issue is consumer perception…
- i.e. whether Which?, the Competition Regulator, or Tesco has more pulling power with the public.
- And Tesco, with First Party Data…
- …are in the best position to judge the extent of ‘misleading’ shoppers…
- …and add any info to a Clubcard deal that will neutralise any misunderstandings.
- In the full knowledge that disappointed shoppers can trigger the Tell-a-Friend option:
- ‘Please me, and I tell one friend…
- …disappoint me and 10 friends will learn of my displeasure.’
- Add Social Media to multiply this reaction by factors of 10, 100 or even 1,000’s…
- …in the right hands.
