Which? Calls Out Tesco To CMA Over Clubcard Prices

Tesco is in trouble with the UK's competition watchdog. It's because they haven't given out enough information on pricing for its loyalty card offers. Consumer group Which? is reporting them.

The group thinks that the UK's biggest retailer didn't explain the price of items clearly for Clubcard holders. This means shoppers can't compare prices easily between different sizes, brands or retailers.

Not having unit pricing might be misleading for shoppers. This is against consumer protection rules. It can make it hard for shoppers to know which product is the cheapest.

Which? discovered that Tesco was selling a 700g bottle of Heinz tomato ketchup. The regular price was shown to be £3.90, or 55.7p per 100g. However, there was a Clubcard label which indicated that the same bottle was on sale for £3.50. Unfortunately, the unit price of 50p per 100g was not provided.

The ketchup on the shelf had different prices. A bottle of 480g had a lower price for Clubcard members than for non-members. However, a 910g bottle of the same ketchup was cheaper than the Clubcard option. Which? thinks people could be confused and think that the Clubcard option is the best deal.

Supermarkets are being looked at closely because of big increases in food prices. They are being criticized for having less cheap food in small stores and charging a lot for home delivery.

Sue Davies works at Which? and deals with food policy. She thinks Tesco's Clubcard pricing is not clear. This confuses shoppers who already struggle with high food prices. It could even be illegal.

Tesco needs to do better. As the UK's largest supermarket, they should prioritize their customers. They need to add clear unit pricing on all offers, even Clubcard deals. This would help shoppers find the best deals easily. Tesco should act on this now.

The regulator will check unit pricing. They'll do it for supermarket member price schemes. The schemes are growing. This is part of the regulator's review.

During a crisis, supermarkets must be responsible and not cheat customers. They need to display clear prices to help customers get good deals.

Tesco's representative said they asked local trading standards in Hertfordshire for advice and approval. This is where Tesco is based. The advice was about how the company prices its Clubcard. Tesco's worth is £19bn.

They think it's important to offer good value and clear prices. They agree that the regulations should be clearer. They follow the current rules, so they're unhappy that Which? criticized their Clubcard Prices scheme. The scheme helps a lot of households save money.

In January, the CMA said it would investigate unit pricing. Comparing costs is crucial, especially during a cost of living crisis. The CMA wants shoppers to compare similar items.

The watchdog will check if retailers follow the law. It will also see if customers know enough about prices. They'll investigate the use of unit price information. This is like a previous investigation. The watchdog did this in 2015. It suggested the government look at pricing laws again.

When asked about the complaint from Which? against Tesco, the CMA said they will publish their review and recommendations for the government at the end of July.

The announcement was made in May. It said they would investigate if a bad market caused food prices to rise. They will also look at fuel prices.

Last month, Jeremy Hunt, the chancellor, said the government can change the pricing rules and guidance based on the CMA's review.