Tesco, the largest supermarket chain in the UK, is under scrutiny by the Competition & Markets Authority following allegations of possible law violations tied to the lack of clarity in its Clubcard pricing.
The claim was initiated by the consumer rights group, Which?, accusing Tesco of failing to provide clear pricing for a significant number of deals presented through its Clubcard program.
Which? highlighted a case where a bottle of Heinz ketchup was marketed at £3.90, or 55.7p per 100g for ordinary customers. However, Tesco did not apply the same pricing labels to its Clubcard deals, leading to potential confusion over whether these deals actually provided the best value. The group pointed out that a larger 910g bottle of Heinz ketchup actually offered better value per 100g.
Sue Davies, the lead of food policy at Which?, criticised Tesco’s ambiguous Clubcard pricing, saying it could be either puzzling for customers grappling with rising food prices, or, at worst, legally problematic. She said, “It’s not acceptable from the country’s leading supermarket. Tesco should prioritise its customers and immediately ensure all offers, including Clubcard promotions, display clear unit pricing for easy comparison.”
In response, Tesco stated, “Clear pricing and value are critical to us. We have always strived to comply with regulations, which is why we sought a review from Trading Standards for our Clubcard Prices. They have officially approved our labelling, asserting it adheres to current legal standards and guidelines.”
The supermarket chain voiced its support for further clarity in pricing regulations for both businesses and consumers and is actively seeking ways to enhance its pricing display clarity for customers. However, Tesco expressed disappointment in the unfounded claims made by Which? against its Clubcard Prices scheme, emphasizing its compliance with existing rules and the value it offers to millions of customers.
This criticism comes at a time when supermarkets are already facing pricing pressure, following revelations last month that the Government is considering imposing price caps on essential foods to combat inflation. Grocery industry leaders have disparagingly termed the proposal as an “idiotic idea,” contending their efficiency in maintaining lower prices.
