Supermarkets must clean up their act on pricing practices

Having seen this topic covered on the BBC and then Sky News this morning, when the CMA’s “not widespread” verdict was coming through loud and clear, I was surprised at the contrast with the line being taken by Which? suggesting that misleading promotions are endemic [which I have generally believed to be the case] and I felt the the CMA was pulling its punches. Perhaps it all hangs on the use of the words “deliberately misleading”. Personally I do not think the major supermarkets have a prevailing intention to mislead us over offers but I consider they should do much more to ‘audit’ their promotions and put things right much more quickly when errors do occur.

Incidentally, I think the BBC piece rather bungled the story by showing a VT of different offer scenarios where the pricing images did not correspond with the studio presenter’s narrative! Sky made a better fist of it altogether. Perhaps the BBC straightened it out later but at 07:05 am it was a mess.

I understand the principle that it is wrong to suggest that a product’s price represents a reduction compared to a previous price if the discounted price has actually applied for longer than the original price [i.e. the discounted price has outlasted the comparator price and thus become the regular price], but if the price shown as the previous price was genuinely higher then the lower price is still a bargain. The implication of the publicity was that the longer-lasting lower price should be killed, whereas in fact it’s only the misdescription of the price adjustment that requires correction.

“concerns about unit pricing seem to have been dismissed by the CMA”.

The CMA report states:
“In relation to unit pricing, we agree with Which? that issues of legibility and consistency are causing unnecessary confusion for consumers. We have also found that a clear and consistent approach to unit pricing would bring about benefits across nearly all of the issues raised by Which?, in particular by equipping consumers with the information to make simple and meaningful comparisons between different products, irrespective of brand, size, and any ongoing promotional activity. We are recommending that the law and guidance in this area be changed.”

To me, this says that, far from being dismissed, the CMA agrees action is necessary and is making recommendations to the Department for Business, Innovation and Skills.

Thanks Malcolm. I missed that paragraph. I wonder why the CMA document I provided a link to makes no reference whatsoever to possible problems with unit pricing. I’m one of those who makes frequent use of unit prices and it’s my most frequent concern.

wavechange, although your document was dated July 15 it is presumably superceded by the CMA report, following their investigations. I agree that unit pricing needs to be clear. I do, sadly, check whether I am always getting the best deal, but many rely on what the shop publicises as bargains.

I can only assume the CMA’s conclusion from their research that deliberately misleading pricing is not widespread is well-founded. If so we need to keep the problem in perspective and hope the CMA will see to it that changes are made and offenders dealt with. I just wish the public had access to Trading Standards so that problems could be reported directly, instead of being filtered through an overloaded CAB. Action might then be taken more promptly.

As far as I can tell, the document was created on the afternoon of 14 July, Malcolm. Maybe the approach is that if you want to encourage people to use unit prices it’s best not to mention possible problems.

Like NFH I focus on the current price rather than what is claimed to be a special offer. In Tesco, special offers usually represent a saving but not always. For example cucumbers previously on sale at 49p each have been offered at 90p each or £1 for two on several occasions.

My understanding is that CAB handles general enquiries and passes them on to Trading Standards or elsewhere, depending on the nature of the call – without which intervention, TS would be even more overwhelmed than it is at present. It would be great if TS was better funded but I have not seen any indication that this will happen.

One of my fascinations with unit pricing is of the occasional blunders. If I spot one in Tesco I remove the shelf label and hand it in at the customer service desk. Here’s one that got forgotten about, in 2011: “Seabrook Crisps 6 Pack. £1.28 Any 2 for £2.00 £21.34 per 100g.” It is difficult to know if these pricing blunders are made with the help of computers.

Quite right Alfa! Supermarkets sell direct to the public they are not Cash and Carry companies!!

We have the choice of whether to take advantage of a multi-buy or not. We regularly shop at M&S and their multibuy approach for us is very sensible. Offers are, for example, 3 for £10 giving a reasonable choice of different meats, fish for example. 3 for £5 in the deli – a wide selection to choose from. 2 for £2.50 in bread and bakery. These are all products we would normally buy, and save on their normal prices. And unless you go in specifically for a single item, I would have though most people would be able to benefit.

However, some might believe that the lower price should also be available on individual products, and I can see their point. We never know whether this sort of marketing actually increases sales, or simply subsidises the larger buyer at the expense of the smaller. But while it is there, i’ll benefit from it. Others might be better using shops that don’t make such offers – including the High Street (although our local butcher offers a meat pack at a discount!).

I just hope that M&S don’t get banned from offering their £10 meal deals 🙂 I don’t support the idea of the”banning” of legitimate practices.

We don’t have an M&S near us so don’t often shop there but those are sensible multi-buys. You don’t have to eat the same thing for days to get through them.

Multi-buys are good when they can go in the cupboard or freezer and don’t have to be consumed quickly but otherwise they should be banned.

Have you visited “mysupermarket dot co dot uk”? I am not sure whether historic data is accessible but it has current prices for numerous food and household products stores.

Interesting, and impressive if it works, but it’s still pushing the onus onto the consumer – which is only OK if you’re smart and have LOTS of time. The onus should be on the supermarkets. If I buy a car, the manufacturer has to prove things like mpg and the safety. Why are supermarkets still allowed to make these often dishonest claims without any justification?

Till receipts are not always easy to understand.

I have pointed out overcharging on a special offer only to be shown that they ring up the normal price and the deductions appear at the bottom and you have to work out for yourself what the item cost.

All done to confuse you.

That’s one of the reasons I look at unit prices. I find product descriptions confusing, and that’s not just with supermarkets. For years, Tesco referred to packaged salmon fillets as ‘meat’ on the receipt. 🙁