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CMA finds evidence supermarkets misled consumers Supermarket pricing: CMA finds 'misleading tactics'
(about 1 hour later)
The competition regulator has found evidence supermarkets are misleading customers with confusing pricing promotions. The competition regulator says it has found evidence that supermarkets are misleading customers with confusing pricing promotions.
After a three month study, the Competition and Markets Authority found some examples that "could be in breach of consumer law". Fines could follow. After a three-month study, the Competition and Markets Authority found some examples that "could be in breach of consumer law".
The investigation came after a complaint by the consumer group Which?. The investigation came after a complaint by the consumer group Which?
Which? said that it had found hundreds of examples of "misleading and confusing pricing tactics". The supermarket industry said it accepted that the guidance on promotions needed updating.
The CMA is demanding that pricing policies in supermarkets are now cleaned up so that customers are able to understand what they are being offered, and whether a multi-buy offer will actually save them money. In its so-called super-complaint, Which? said that it had found hundreds of examples of "misleading and confusing pricing tactics".
It said that although there was evidence of misleading pricing, the practice did not appear to be widespread, and retailers are generally taking compliance seriously. The CMA said although there was evidence of misleading pricing, the practice does not appear to be widespread, and retailers are generally taking compliance seriously.
It said it would now investigate further and that in some cases, fines could follow.
"We have found that, whilst supermarkets want to comply with the law and shoppers enjoy a wide range of choices, with an estimated 40% of grocery spending being on items on promotion, there are still areas of poor practice that could confuse or mislead shoppers," said Nisha Arora from the CMA."We have found that, whilst supermarkets want to comply with the law and shoppers enjoy a wide range of choices, with an estimated 40% of grocery spending being on items on promotion, there are still areas of poor practice that could confuse or mislead shoppers," said Nisha Arora from the CMA.
Alex Neill from Which? told the BBC: "We are pleased to see that the CMA hasn't ruled out taking action. Clearer prices
Among the potentially misleading practices found by the CMA were:
As part of its investigation, the CMA examined the pricing on 150,000 products.
Of those, it said that 800 had potentially misleading prices. It said it would now be talking to businesses in more detail about the problems, and issuing fines where necessary.
It also recommended that the rules on pricing should be updated.
In response to the report, a spokesperson for the British Retail Consortium (BRC) said, "We accept that the guidance on promotions needs updating, and the rules on unit pricing may need revision.
But we have said consistently that this should be achieved through the ongoing review of the Pricing Practices Guide and the BIS Unit Pricing Working Group."
Alex Neill from Which? told the BBC: "We are pleased to see that the CMA hasn't ruled out taking action."
She added that Which? would continue to campaign to make supermarket prices clearer for shoppers. "It's really difficult for consumers," she said.She added that Which? would continue to campaign to make supermarket prices clearer for shoppers. "It's really difficult for consumers," she said.
Have you been affected by confused pricing or offers? Are you a supermarket worker? Please email haveyoursay@bbc.co.uk with your experiences and pictures.Have you been affected by confused pricing or offers? Are you a supermarket worker? Please email haveyoursay@bbc.co.uk with your experiences and pictures.
Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways:Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: