THE Competition and Markets Authority (CMA) has revealed concerns over unit pricing information being difficult to read on product packaging.
Coming as part of an update on the CMA’s ongoing work to tackle cost-of-living pressures, the organisation has spent the past two months assessing how retail competition is working in the UK grocery sector – particularly between supermarkets such as Asda, Morrisons, Sainsbury’s, and Tesco, as well as Aldi and Lidl.
The review has focused on the extent to which rivalry between retailers ensures they keep their prices as low as possible and whether consumers can shop around to get the best deals.
Concerns were raised regarding unit pricing information being difficult to read, with the CMA finding instances whereby text on labels were too small or shelf edge labels were obscured by promotional information or shop fittings.
Other findings revealed different measurements being used for similar types of products, thus making it hard for consumers to compare deals on a like-for-like basis. Missing or incorrectly calculated unit pricing information was also identified, as was some retailers not displaying unit prices for products on promotion.
In its report, the CMA has set out recommendations on the unit pricing rules and is calling on the government to reform this legislation. The CMA has also written to those that are not fully complying with the PMO and expects them to make changes to address its concerns or risk enforcement action.
More broadly the CMA is calling on all retailers to give consumers the unit pricing information they need to make meaningful comparisons, particularly for products on promotion, even before any reforms to the PMO are introduced.
The CMA will publish the findings of its consumer research into the use of unit pricing in Autumn 2023.
Sarah Cardell, CEO of the CMA, said, “With so many people struggling to feed their families, it’s vital that we do everything we can to make sure people find the best prices easily. We’ve found that not all retailers are displaying prices as clearly as they should, which could be hampering people’s ability to compare product prices. We’re writing to these retailers and warning them to make the necessary changes or risk facing enforcement action.The law itself needs to be tightened here, so we are also calling on the government to bring in reforms.
“We’ve also looked at how competition is working across the grocery retail market more widely. The overall evidence suggests a better picture than in the fuel market, with stronger price competition between all of the supermarkets and discounters. In the next phase of our work, we will examine competition and prices across the supply chain for the product categories we’ve identified. We’ll also continue to monitor the situation to ensure that competition remains effective as input costs start to fall.”
