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Pricing promotions and ‘loyalty offers’ must not mislead shoppers, say consumer protection experts

The Chartered Trading Standards Institute (CTSI) has welcomed a new report by consumer group Which? highlighting ‘murky and confusing’ loyalty pricing practices among UK retailers, and is calling for improved protections to ensure that shoppers are not misled.

• Research by Which? revealed that prices of products at retailers including Boots, Superdrug, Tesco, Sainsbury’s and the Co-op were raised for a relatively brief period of time before going on ‘offer’.
• Which? also found that more than half (55%) of shoppers thought non-member prices were higher than the usual selling prices of those products.
• At Boots, Which? found 649 products whose price for non-members had been raised on the same day a ‘loyalty promotion’ began.
• CTSI has long called for greater clarity on pricing, promotions and loyalty schemes, and last year the Institute – which represents the Trading Standards professionals responsible for enforcing fair trading – welcomed an inquiry by the Competition and Markets Authority (CMA) into pricing practices in the grocery sector. The findings of that inquiry are due to be published later this year.

CTSI is also considering reviewing its Guidance for Retailers on Pricing Practices to ensure it takes into account any potential discrepancies in retailers’ loyalty schemes. That guidance is published as part of CTSI’s Business Companion platform, a free and impartial online resource to help businesses ensure they are following best practice on consumer protection law. 

Trading Standards professionals are at the forefront of ensuring that prices and price promotions are legally correct and not misleading. CTSI encourages the public to report pricing practices where they feel promotions or price advantages are not genuine. That information is crucial in helping Trading Standards build up a picture of unfair practices and potentially take action to correct any breaches found.

Jessica Merryfield, Head of Policy and Campaigns at CTSI, said: “With the cost-of-living crisis still present in our minds and lives, consumers are more aware than ever of the need to have value for money. Loyalty schemes and discounts can be very useful to consumers who are looking to make regular savings on their everyday essential purchases. How much something costs, being able to compare prices, and distinguish what offers best value for money for every consumer is an essential part of making any purchase.

“Accurate and clear pricing is crucial to this, and the law requires that all pricing promotions offer a specific and genuine price advantage to the purchaser. Such promotions and pricing practices must not mislead.

“We are aware that the CTSI Pricing Guide was brought in before the popularity of loyalty pricing schemes and we will review the effectiveness of it, in line with the findings by Which?

“Businesses who are unsure as to what their rights and obligations are can find free impartial advice on our Business Companion website. Simply visit the website and search for ‘pricing’; there are numerous guides and information leaflets on there, which should help a business understand how prices and price marking should be given and displayed. If a business is still unsure, they should contact their local Trading Standards service for advice and assistance.”