Tesco has been accused of 'breaking the law' with its Clubcard price promotions.
Consumer group Which? has reported the UK's biggest supermarket chain to the Competition and Markets Authority (CMA) amid concerns that it does not provide detailed pricing information on its loyalty card offers.
The complaint is around Tesco's unit pricing, the small print on shelf price tags which give the price of the product per 100g or 100ml to enable shoppers to compare the value for money between different-sized products and brands. Which? said the lack of unit pricing could be a “misleading practice” under consumer protection regulations as it had not clearly explained the unit price of deals for its Clubcard holders.
Read more: How new Morrisons More card compares to others including Tesco, Asda, Sainsbury's and Aldi
This is particularly crucial during the current cost of living crisis as grocery inflation has hit historical highs, according to Which? "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," the report said.
More than 20m people in the UK hold a Tesco Clubcard, collecting points every time they shop instore or online or use a Tesco filling station. In November, Tesco’s Clubcard programme was crowned the best supermarket reward scheme, but the retailer came under fire earlier this year when it announced it was cutting the value of its points collected at its petrol stations and reducing the value of Clubcard vouchers spent with reward partners from next week.
Which? said it is urging Tesco to act now and introduce unit pricing on Clubcard prices as soon as possible to help shoppers find the best deals, although the campaign group added that it has found issues with unit pricing across all supermarkets.
Sue Davies, the head of food policy at Which?, said: “Tesco’s unclear Clubcard pricing is at best confusing for shoppers struggling with soaring food inflation and at worst could be breaking the law. This is simply not good enough from the UK’s biggest supermarket. Tesco should think of its customers and act now to introduce clear unit pricing on all offers, including Clubcard promotions, so shoppers can easily find the best value items.
“We expect the regulator to look at unit pricing on the growing number of supermarket member price schemes as part of its review. “At this time of crisis, supermarkets cannot cut corners. They have a duty to ensure pricing is clear so that customers can get the best value.”
In one example, Which? found a 700g bottle of Heinz tomato ketchup in Tesco for which the label showed the standard price to be £3.90, or 55.7p per 100g. A Clubcard offer label also showed the same size bottle on offer at £3.50, but the unit price, which would be 50p per 100g, was not given. At the same time a 910g bottle of the same ketchup on the shelf below was priced at £3.99, or 43.8p per 100g, for all shoppers, making it the cheapest option per 100g. Which? argued many shoppers would wrongly assume the Clubcard option was the best deal available.
But Tesco has rejected the accusations from Which? and said its price labelling has been “formally endorsed” by Trading Standards. It added that it is “disappointed” by the “ill-founded claims” from the watchdog.
Do you think supermarket loyalty scheme save you any money? Join in the conversation below
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, and are actively looking at how we can make the way we display pricing even clearer for our customers.
“However, given that we are complying with all the current rules, we are disappointed that Which? has chosen to make these ill-founded claims against our Clubcard Prices scheme, which helps millions of households get great value week-in, week-out, and could save shoppers up to £351 per year.”
A CMA spokeswoman said: “Our current review of unit pricing is considering the issue of how supermarkets provide unit price information for products on promotions, including loyalty promotions. We will set out our findings in July”.
Now read:
- Shoppers boycott supermarket foods hit by 'shrinkflation'
- Poorest shoppers are bearing the brunt of supermarket price hikes
- Deals expert explains best time to look for yellow sticker bargains
- Warning of more toilet roll shortages as new law takes effect
- More shoppers buy 'yellow sticker' reduced food as concern grows over supermarket prices
