Eight of the UK’s major grocers have agreed to sign up to a set of “principles” on special offers and promotions on food and drink products.
Tesco, Sainsbury’s, Morrisons and The Co-operative Group are among retailers to have agreed to adopt guidelines drawn up by UK competition watchdog The Office of Fair Trading.
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The OFT said the principles will mean consumers can “rely” on promotions “being fair and meaningful”.
Waitrose, Marks and Spencer, Aldi and Lidl have also pledged to incorporate the principles. Asda and Iceland Foods have yet to sign up.
The OFT investigated supermarket prices amid concerns consumers could be confused. It said it had not found grocers had broken the law or had used “misleading” practices. However, the watchdog said there “appeared to be inconsistency in the way regulations were “interpreted and applied”.
The new principles include prices not being artificially inflated to make a discount more attractive, the OFT said. Retailers must also ensure claims such as “Bigger Pack, Better Value” were true.
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By GlobalData“Household budgets across the country are under pressure and shoppers should be able to trust that special offers and promotions really are bargains. Prices and promotions need to be fair and meaningful so shoppers can make the right decisions,” OFT chief executive Clive Maxwell said.
“Our principles taken together with previous guidance provide supermarkets with a clear benchmark for how they should be operating so that their food and drink promotions reflect the spirit as well as the letter of the law. We are pleased that supermarkets have engaged constructively throughout our investigation and we will keep a watching brief on promotional practices in this sector.”
Click here for reaction from retailers and analysts to the OFT principles.
