Which? thinks Tesco's decision not to include unit pricing – the price per 100g or 100ml, for example – on its Clubcard offers could in some cases be a misleading practice under the Consumer Protection From Unfair Trading Regulations 2008 (CPRs), so we've reported Tesco to the regulator.
Unit pricing helps shoppers compare the prices of different products and make informed decisions about what to buy. This is particularly crucial during the current cost of living crisis as grocery inflation has hit historical highs.
We are urging Tesco to introduce unit pricing on its Clubcard prices as soon as possible to help hard-pressed shoppers find the best deals.
What are the rules on unit pricing?
While the rules on unit pricing are set out in the Price Marking Order 2004, companies also have to be aware of the rules on ‘unfair commercial practices’ under the CPRs.
The law in this area is not straightforward, but we believe that under the CPRs, unit prices could be seen as ‘material information’ that the average consumer needs in order to take an informed decision.
Likewise, in relation to volume promotions (multi-buys), it said: ‘Failure to provide the single item or the promotional unit price could be considered a misleading practice under the CPRs.’
We believe similar arguments apply to Clubcard promotions and other member-only offers – but ultimately it would be for the courts to decide if the law is being broken in any given case.
It’s worth noting that there will be some types of promotion – most typically mix-and-match offers, where different products are combined – where it may not always be possible to include unit pricing.
Which?’s 2015 super-complaint led to a series of recommendations to improve unit pricing in supermarkets – but the legislation itself wasn’t changed and we believe there’s still a lot more to be done. In January 2023, the CMA announced a review into unit pricing and is due to report its findings later this year. It said the cost of living crisis meant it was important that shoppers were able to compare products like-for-like.
Find out more:Why unit prices are important
And unit pricing is important because shoppers could pay up to 346% more per gram or millilitre by going for different pack sizes of exactly the same product.
We think Tesco should follow suit.
You can see in the example below how unit pricing makes it easy to see the price per 100 sheets of toilet tissue in Sainsbury's (the label at the top of the picture), while the lack of unit pricing on the Clubcard offer in the bottom picture leaves the cost per 100 sheets unclear.
Find out more:
Quiz: which is the best deal?
Find out more:What does Tesco say?
A spokesman for Tesco said: ‘Providing great value and clear pricing is really important to us. We always take care to ensure we are compliant, which is why we asked Trading Standards to review our approach on Clubcard Prices. They formally endorsed our labelling, confirming it meets the current legal requirements and guidelines.
‘We are supportive of calls for greater clarity on the regulations in this area, in the interests of both businesses and consumers. We are actively looking at how we can make the way we display pricing even clearer for our customers but are confident we are fully compliant with the current rules.’
Trading Standards in Hertfordshire – where Tesco has its UK base – told Which? it had advised Tesco its labelling was compliant with the Price Marking Order 2004 in December, but did not say if it had considered possible breaches of the CPRs. It said its advice would be reviewed again this year and that it hoped the CMA’s review would lead to changes that bring increased clarity.
Find out more:Is the government doing anything?
The CMA’s review into unit pricing is due to update in late July and will provide recommendations to the government.
The Chancellor, Jeremy Hunt, met the CMA last month to find out more about its work on grocery pricing. After the meeting, Hunt announced that the government was ready to update pricing rules and guidance on the back of the CMA’s review.
Which? wants to see the rules updated to make it clear that promotions and loyalty scheme offers must include unit pricing.
We have asked the CMA to investigate Tesco’s behaviour as part of its review and have shared our findings with the Department for Business and Trade. We expect government action aimed at addressing confusing pricing practices to follow.
Affordable Food For All campaign
Improving unit pricing is just one way supermarkets can help to support people during the current cost of living crisis.
Through our Affordable Food For All campaign, Which? is also calling on supermarket bosses to offer a choice of budget ranges that support a healthy diet in convenience stores. That's especially important in areas where people are struggling the most.
Supermarkets must also make it easier for all customers to work out which items offer the best value for money by making sure their pricing is clear and easily comparable – and this includes unit pricing.
Do you want to see your supermarket take action to support you through the cost of living crisis?source https://www.which.co.uk/news/article/tesco-could-be-breaking-the-law-due-to-unclear-pricing-says-which-apWr23G4kHhE