CMA urges supermarket to display clearer pricing in order for customers to find best deal

The Competition and Markets Authority (CMA) has urged UK supermarkets to make their prices clearer to customers to help families find the best deals on the shelf.

The new recommendation from the government department comes as a full report into the use of unit pricing in the UK is set to be published this autumn.

However, it has already said that stores must be going further to help customers struggling under the pressure of the cost of living crisis.

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.

Ms Cardell also said that the CMA would be looking into how competition works across the supermarket sector. It comes after stores were criticised for their unnecessarily-high petrol prices earlier this month.

She added: "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."

The new recommendation on clearer pricing has been welcomed by industry groups. Consumer advice group Which? has called on the government to enact change on its pricing rules "swiftly" and called on the closure of "the loopholes that are allowing supermarkets to unnecessarily confuse shoppers".

Sue Davies, Which? Head of Food Policy said: “Which? has repeatedly exposed inconsistent and confusing supermarket pricing, which could make it difficult for shoppers to easily work out which products offer the best value, so it’s positive to see the Competition and Markets Authority calling for immediate action from the supermarkets on this issue.

“The supermarkets must finally do the right thing by their customers and urgently act on the areas highlighted by the regulator. This includes the need to put unit pricing on promotions, such as on loyalty card offers and multi-buys, and make unit pricing clearer and more consistent.

“The regulator also warns that customers who rely on expensive convenience stores aren’t fully benefiting from strong competition between supermarkets. Supermarkets can address this immediately by bringing in a range of budget line products that support a healthy diet to their convenience stores."

She added that along with change needed to update pricing rules, the CMA "must be ready to take enforcement action if the supermarkets don’t act to quickly improve their pricing practices.”