The Competition and Markets Authority has initiated a probe last week into the pricing strategies of supermarkets in response to allegations of misleading practices aimed at making savings seem more significant than they actually are. The investigation will specifically scrutinize schemes such as Sainsbury’s Nectar Prices and Tesco’s Clubcard Prices to determine if they potentially mislead consumers. The investigation is scheduled to conclude in July.
GLOThe Competition and Markets Authority has initiated a probe last week into the pricing strategies of supermarkets in response to allegations of misleading practices aimed at making savings seem more significant than they actually are. The investigation will specifically scrutinize schemes such as Sainsbury’s Nectar Prices and Tesco’s Clubcard Prices to determine if they potentially mislead consumers. Scheduled to conclude in July, the investigation aims to ascertain whether loyalty prices offered by supermarkets truly constitute genuine promotions and if they indeed offer the value they purport to provide.
The Competition and Markets Authority (CMA) has stated its intention to assess whether any segments of consumers are disadvantaged by promotional practices and whether loyalty pricing influences consumer behavior, thereby impacting how supermarkets compete against each other.
Sainsbury’s CEO Simon Roberts recently defended the grocery chain’s loyalty program amidst criticism from MPs and certain consumer advocacy groups. Roberts emphasized the clarity of their pricing policies and consistency in implementing them.
This latest investigation by the CMA is part of its broader initiative to address the pressures of rising living costs. It follows two significant reports conducted by the watchdog last year regarding market competition, which absolved supermarkets of allegations of exploiting the cost-of-living crisis.
The CMA clarified that supermarkets are not culpable for driving up food prices and asserted that despite the soaring costs of food, competition-related issues were not significant factors contributing to this trend.
