The CMA is today starting a programme of work looking into unit
pricing practices online and instore in the groceries sector.
Unit pricing shows how much a particular product costs by weight
or volume, which helps people identify best value for money.
In the context of the rising cost of living, people shopping for
food and other essential products need confidence that they have
the right information to make great choices and are getting fair
deals. It is important that shoppers who look at the prices of
products should be able to compare like for like. This, together
with recent concerns raised by stakeholders, has led the CMA to
revisit the issue of unit pricing.
This new work follows the 2015
Groceries Super-complaint where the CMA considered pricing
and promotional practices in the groceries market and concluded
that complexities and inconsistencies with unit pricing may
prevent people from spotting which deal gives them the best
value.
These included:
- different interpretations of legibility of unit prices
amongst retailers
- inconsistencies with how retailers present unit prices for
similar products
- inconsistencies with how retailers present unit prices for
products on promotion
George Lusty, Senior Director for Consumer Protection at the CMA
said:
We know that the increased cost of living has hit the pound in
people’s pockets.
That’s why we’re pressing on with this important grocery unit
pricing work to ensure shoppers can more easily compare prices
and make choices that are right for them.
The project will consider the following:
- if the unit pricing issues identified during the 2015
Super-complaint remain
- compliance with the law by retailers
- consumer awareness and use of unit pricing information
The project is at an early stage and the CMA has not formed a
view on these issues. The CMA will provide an update on the case
page later in 2023.
Sue Davies, Which? Head of Food Policy, said:
Grocery prices are a huge concern as households all over the
country grapple with the cost of living crisis, so it’s timely
and important for the CMA to be looking at whether prices are
clearly and fairly displayed at the supermarket.
We know poor, inconsistent and sometimes missing price
information is a problem and that’s why Which? is campaigning for
pricing transparency from supermarkets, so that shoppers can
easily work out which products are the best value.
The project forms part of the CMA’s work to help people,
businesses and the UK economy by promoting competitive markets
and tackling unfair behaviour outlined in the recent 2023/24
draft Annual
Plan.
For more information, visit the Grocery Unit Pricing page.
