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| Supermarket pricing: CMA finds 'misleading tactics' | Supermarket pricing: CMA finds 'misleading tactics' |
| (34 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 the vast majority of offers represented a good deal for customers. | |
| 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". | 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". |
| However, the CMA said that 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 prices | Clearer prices |
| Areas of concern identified by the CMA included: | 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. |
| Alex Neill from Which? told the BBC: "We are pleased to see that the CMA hasn't ruled out taking action." | |
| However, the supermarket industry said the Which? complaint had been shown "not to hold water". | |
| "Within the Which? super-complaint there have only been a relatively small number of confusing, or erroneous, prices identified," said Tom Ironside, the British Retail Consortium's director of business and regulation. | |
| "The vast majority of these offers are an extremely good deal," he told the BBC. | |
| Which? 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", making price comparisons difficult. | |
| 'Lack of regulation' | |
| Some consumers said they agreed with the CMA's findings. | 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." | "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. | 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. | "There should be heavy fines imposed for blatant and persistent misleading of the public," said Martin Cohen. |
| The Retail Ombudsman said that 1% of the complaints it received were about pricing offers in supermarkets. | The Retail Ombudsman said that 1% of the complaints it received were about pricing offers in supermarkets. |
| "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 problem is that the current rules are merely guidelines, which present retailers with a lot of wriggle room," said Dean Dunham, the Retail Ombudsman. |
| "What the report really highlights is a total lack of regulation in this important area." | "What the report really highlights is a total lack of regulation in this important area." |