UK supermarket promotions "could confuse or mislead" consumers, the country's competition regulator said today (16 July).
In response to claims from consumer lobby group Which? of "dodgy offers", the Competition and Markets Authority said it would work with retailers to "cut out promotional practices" that mislead shoppers.
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It pointed practices including so-called "was/now" promotions, where the discount price is advertised as a promotion for longer than the higher price applied. The CMA also found "more could be done" to reduce the complexity in unit pricing to make it a more useful comparison tool for consumers.
The regulator said if its work with retailers reveals "clear evidence of breaches of consumer law, this could lead to enforcement action".
"We have found that, whilst supermarkets want to comply with the law and shoppers enjoy a wide range of choices, with an estimated 40% of grocery spending being on items on promotion, there are still areas of poor practice that could confuse or mislead shoppers. So we are recommending further action to improve compliance and ensure that shoppers have clear, accurate information," Nisha Arora, senior director, consumer at the CMA, said.
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The CMA has recommended the Department for Business, Innovation and Skills publishes best practice guidelines on the legibility of unit prices, and looks at ways to simplify and clarify legislation, including how the law requires items to be unit-priced when they are on promotion.
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By GlobalDataThe British Retail Consortium said the CMA's report "are not systemic across the industry as we have always maintained". The retail association said it was "pleased" the CMA "agrees" issues with promotions issues "are best dealt with through the ongoing review of the Pricing Practices Guide which has been in progress for over a year".
Tom Ironside, the BRC's director of business and regulation, said: "It is very clear that the allegations contained in the super complaint were blown out of all proportion and that the CMA recognises supermarkets take compliance seriously. Our members will continue to work closely on the Pricing Practices Guide to ensure transparency and fair treatment for our customers."
The guide was republished by BIS in 2010. It has no mandatory force and traders are not under any legal obligation to follow it but the guide recommends practices in giving the consumer information about prices. The guide is under review by the Chartered Trading Standards Institute (CTSI).
The CMA said the review should clarify how the legislation applies to certain promotional practices.
Which? executive director Richard Lloyd said: "The CMA’s report confirms what our research over many years has repeatedly highlighted: there are hundreds of misleading offers on the shelves every day that do not comply with the rules. This puts supermarkets on notice to clean up their pricing practices or face legal action.
"Given the findings, we now expect to see urgent enforcement action from the CMA. The Government must also quickly strengthen the rules so that retailers have no more excuses."
