Which? reports Tesco to CMA over ‘misleading Clubcard promotions’

Consumer champion Which? has reported Tesco to the Competition and Markets Authority (CMA) over a lack of detailed pricing information on its loyalty card offers.

Which? alleges that Tesco has failed to adequately explain the unit price of deals available to its Clubcard holders, which would more easily enable consumers to assess which package sizes between different brands represent the best value for money.

By way of example, Which? found that a 700g bottle of Heinz ketchup in Tesco showed the standard price as £3.90 – equating to 55.7p per 100g. It claimed a Clubcard label, though, showed the same size bottle on offer at £3.50, yet the unit price, which would stand at 50p per 100g, was not given.

In the same scenario, Which? said there was a 910g bottle of the same ketchup by Heinz in stock that was priced at £3.99, or 43.8p per 100g, available to all shoppers, making it the cheapest option per 100g. Which? contested that many shoppers would wrongly assume the Clubcard option was the best deal available.

Sue Davis, head of food policy at Which? said Tesco’s Clubcard pricing is “confusing at best” and at worst could be breaking the law.

Davis went on to say that Tesco should act now to implement clearer unit pricing on all offers.

“We expect the regulator to look at unit pricing on the growing number of supermarket member price schemes as part of its review,” she added.

Competing supermarket Lidl recently won a lawsuit which contested that Tesco had copied the appearance, a yellow circle against a blue backdrop, of Lidl’s own logo to promote its Clubcard prices.

A judge agreed, ruling that Tesco had "taken unfair advantage of the distinctive reputation" of the Lidl branding for low prices.

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