Tesco has been reported to a competition watchdog over its unclear food and drink Clubcard pricing that "could be breaking the law."
Consumer champion group Which? has reported the UK's largest supermarket chain to the Competition and Markets Authority (CMA), after it criticised its unclear pricing display on some products.
Which? found that the Big Four grocery chain has failed to provide unit pricing on certain products including in the promotion, such as the price per 100g. The unit price of deals can help shoppers to compare the value of what they are buying.
Examples that the watchdog found in Tesco included Heinz tomato ketchup where the label showed the standard price for a 700g bottle is £3.90 (or 55.7p per 100g). Meanwhile, a Clubcard label showed the same-size bottle on offer, at £3.50- with no explanation of the unit price, which would be 50p per 100g.
According to the consumer group, the decision not to display the unit pricing on some offers could be a "misleading practice" under the Consumer Protection From Unfair Trading Regulations 2008.
Tesco has since responded that it is "disappointed" by the group's "ill-founded claims" over its price labelling, which it has said has been "formally endorsed" by Trading Standards, after it asked the organisation to review its Clubcard Prices promotions.
Head of Which? food policy, Sue Davies, 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."
"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. We also need to see these retailers support consumers in the face of high inflation by stocking a range of essential budget lines in smaller stores, particularly in areas where people are struggling most."
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”.
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