A consumer group asserts that the absence of explicit pricing on the vast majority of food and beverage promotions by the largest supermarket chain in the United Kingdom may be illegal.
Tesco has been denounced to the competition regulator by a consumer group as officials continue to investigate whether the grocery industry is ripping off consumers.
During the cost of living crisis, Which? complained to the Competition and Markets Authority (CMA) about the dearth of clear pricing on the “vast majority” of the retailer’s food and drink promotions.
It was suggested that the greatest supermarket chain in the United Kingdom may be breaking the law. Tesco has categorically denied this claim.
Concerns center on the retailer’s in-store and online use of so-called unit pricing.
This is the fine print on shelf prices, which provides, for instance, a price per 100g for items such as jam – or per page for toilet paper.
These unit prices enable consumers to compare prices for identical products, which may be larger or smaller, to determine which is less expensive.
“Tesco is notable”
Which? alleges that Tesco’s lack of transparency makes life more difficult for its already-strapped customers.
According to the report, Tesco’s decision not to display unit pricing on its Clubcard offers may constitute a “misleading practice” under the Consumer Protection From Unfair Trading Regulations of 2008 (CPRs).
According to the CPRs, retailers must also refrain from “unfair commercial practices.”
“Which? believes that, under these rules, unit prices could be considered material information’ that the majority of consumers require to make an informed decision regarding how to obtain the greatest value for the product they are purchasing.
“Which? has discovered problems with unit pricing at all supermarkets, but Tesco stands out because it consistently omits unit pricing from its Clubcard offers, which now account for almost all of its promotions on groceries.”
Is ‘reflation’ driving up prices?
The group filed the complaint while the CMA investigates whether supermarkets make excessive profits through price inflation.
The supermarket industry has denied contributing to so-called “reflation”.
Nonetheless, food inflation has been the most persistent component of the primary Consumer Price Index (CPI) measure this year, maintaining the rate higher than anticipated and intensifying the strain on household budgets.
The Office of National Statistics (ONS) reported that food and non-alcoholic beverage inflation remained above 19% in the year to April, according to the most recent data.
The government is desperate to lower food prices to meet its commitment to voters to halve inflation this year.
Ministers are contemplating the possibility of a cap while applying pressure on the food industry as a whole to act.
The sector argues that taxpayer assistance for the energy costs of the supply chain will substantially reduce prices.
Tesco refutes claims of ‘confusing’ labeling.
Tesco, which will report its trading performance to the City next Monday, said it followed all unit price criteria.
A representative stated, “Providing excellent value and transparent pricing is of utmost importance to us. We asked Trading Standards to review Clubcard Prices because we take compliance seriously.
“They duly approved our labeling, confirming that it complies with the current legal requirements and recommendations.
“We support calls for greater clarity on the regulations in this area, as it is in the best interests of both businesses and consumers, and are actively examining how we can make how we display prices for our customers even more transparent.
“However, given that we comply with all current regulations, we are disappointed that Which? has chosen to make these unfounded claims against our Clubcard Prices scheme, which helps millions of households get great value every week and could save shoppers as much as £351 per year.”
But Which? Sue Davies, head of food policy, stated, “Tesco’s unclear Clubcard pricing is, at best, confusing for shoppers struggling with soaring food inflation, and at worst, may be illegal.”
“This is unacceptable from the largest supermarket in the United Kingdom.
“Tesco should consider its customers and act immediately to implement clear unit pricing on all offers, including Clubcard promotions so that customers can easily identify the best value items.”
A spokesperson for the CMA replied, “Our current evaluation of unit pricing examines how supermarkets provide unit price information for products on promotion, including loyalty promotions.
In July, we will present our findings.
