CMA ‘unlikely’ to find loyalty prices in supermarkets misleading
Britain’s competition watchdog has said it is “unlikely” to find widespread evidence to suggest that loyalty prices in stores are misleading shoppers.
The Competition and Markets Authority (CMA), which launched a review into loyalty pricing in the groceries sector in January, said in an update today that although the investigation is ongoing, there is a lack of evidence to suggest that promotions are unfair.
The review was meant to question whether pricing practices for non-loyalty members were “artificially inflated” to appeal to and mislead shoppers.
However, throughout the analysis, the CMA has said it has begun to question whether the ‘was’ and ‘now’ listings on certain items to indicate a savings deal are accurate as well as comparing prices within other supermarkets.
“We are also comparing a sample of supermarkets’ loyalty prices to those prices charged by other supermarkets at the same time,” the CMA wrote in its update.
“Particularly given concerns raised by stakeholders, it is valuable for shoppers to have insight into how loyalty prices can compare with prices available elsewhere, including when they are on promotion at other retailers.”
Helen Dickinson, chief executive of the British Retail Consortium, said the update highlights “once again” that “supermarkets are doing their best.”
Dickinson added: “We welcome the CMA’s update that they have not found widespread evidence of misleading loyalty promotions.
“Whether it’s everyday value, or loyalty schemes discounts, retailers know they have to demonstrate clear value to attract and retain customers.
Findings will be published in a final report in November, which the CMA says will also include guidance for retailers on how to avoid consumer fraud.
The investigation is part of the watchdog’s latest attempts to investigate and improve fair deals amid the cost of living crisis, with others covering topics such as work on road fuel prices, groceries, infant formula, vet services, online shopping and housing.