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Supermarket pricing: CMA finds 'misleading tactics' | Supermarket pricing: CMA finds 'misleading tactics' |
(35 minutes later) | |
The competition regulator says it has found evidence that 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". | 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? |
The supermarket industry said it accepted that the guidance on promotions needed updating. | The supermarket industry said it accepted that the guidance on promotions needed updating. |
In its so-called super-complaint, Which? said that it had found hundreds of examples of "misleading and confusing pricing tactics". | In its so-called super-complaint, Which? said that it had found hundreds of examples of "misleading and confusing pricing tactics". |
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. | 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. | 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. |
Clearer prices | Clearer prices |
Among the potentially misleading practices found by the CMA were: | Among the potentially misleading practices found by the CMA were: |
As part of its investigation, the CMA examined the pricing on 150,000 products. | 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. | 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 guidelines on pricing should be updated. | |
Which? examples | |
Some bottles are priced "per 100ml". Others are priced "per 100g". | |
A 2l bottle was advertised at £1.98 for 28 days, but the price was then lowered to £1 for 63 days. It was advertised as "was £1.98". The rules say such price promotions cannot last longer than the higher price period. | |
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. | 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." | 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." | 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. |
Which? is one of five organisations which is allowed to file super-complaints to regulators. | |
The regulator is required to respond within 90 days. | |
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: |