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Supermarket pricing: CMA finds 'misleading tactics' Supermarket pricing: CMA finds 'misleading tactics'
(about 2 hours 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 "super-complaint" which triggered the CMA's investigation, 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 did not appear to be widespread, and retailers were 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 pricesClearer prices
Among the potentially misleading practices found by the CMA were: Areas of concern identified by the CMA included:
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.It also recommended that the guidelines on pricing should be updated.
Some consumers said they agreed with the CMA's findings.
"The pricing of fruit is one that really annoys me," said Tony Kenny, from Leicester. "Take apples, for example; some are priced per kilo, other are per fruit, making it impossible to compare prices."
Others felt the regulator should have been tougher.
"There should be heavy fines imposed for blatant and persistent misleading of the public," said Martin Cohen.
Which? examplesWhich? examples
A 2 litre 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.
Some bottles are priced "per 100ml". Others are priced "per 100g".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. 'Lack of regulation'
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. 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. The Retail Ombudsman said that 1% of the complaints it received were about pricing offers in supermarkets.
Which? is one of five organisations which is allowed to file super-complaints to regulators. "The problem is that the current rules are merely guidelines, which present retailers with a lot of wriggle room," said Dean Dunham, the Retail Ombudsman.
The regulator is required to respond within 90 days. "What the report really highlights is a total lack of regulation in this important area."
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: