Watchdog cracks down on inaccurate pricing in shops - ​Angelique Bret

Retailers that fail to comply with consumer law have been warned that they face potential enforcement action, says Angelique Bret

The findings published from a recent review of the way grocery stores display prices represent the latest development in the Competition and Markets Authority’s (CMA’s) work to relieve cost-of-living pressures in the UK using its consumer law powers.

The CMA and Trading Standard agencies collectively inspected more than 140 grocery stores across the UK and found examples of retailers displaying inaccurate pricing – and in some cases not displaying the price of goods available in-store at all.

The stores inspected included a mix of different types of retailers – as defined in the CMA’s report – namely supermarket chains, symbol convenience stores, variety stores, and independent food stores.

​The selling price should match the price paid at the till (Picture: stock.adobe.com)

The CMA’s review aimed to assess whether retailers were displaying clear and accurate price information in-store, and whether the indicated selling price matched the price charged at the till, as required under relevant consumer laws.

The CMA said it “identified a lack of compliance” by some retailers “in relation to the display of clear and accurate pricing information”. It highlighted particular concerns about practices at some symbol convenience stores and independent food stores.

“Compliance at the symbol convenience stores and the independent food stores ranged from very good at some stores, to very poor at others, where entire shelves or sections of the store failed to display selling prices for a wide range of goods,” the CMA said in its review findings report.

“The supermarket inspections identified few concerns in relation to price marking. When checking prices at the till, again compliance was very good for the majority of the supermarkets, with no errors recorded at 57 per cent of the stores we inspected, and a single error at 20 per cent of the stores.”

Angelique Bret, Partner and competition law specialist at Pinsent Masons

However, the CMA said its findings suggest some retailers are “either not aware of their legal obligations or view compliance with the relevant consumer law as optional rather than mandatory”. It warned retailers that failed to comply with consumer law that they face potential enforcement action.

The CMA’s strong focus on the grocery sector is part of its broader work to help address cost-of-living pressures in line with the CMA’s annual plan 2024/25. The CMA is also examining suspected greenwashing, that could breach consumer law, in respect of certain fast-moving consumer goods.

The Digital Markets, Competition and Consumers Bill which is now in the final stages of being approved by the UK parliament, will significantly strengthen the CMA’s consumer protection enforcement powers and align them with the authority’s existing enforcement powers under UK competition law. This includes the new ability for the CMA determine, without resorting to court proceedings, when consumer protection law is infringed and to fine businesses up to 10 per cent of their global annual turnover for substantive breaches.

The CMA will also be able to impose significant turnover-based fines on companies for procedural breaches, such as refusing to cooperate with a CMA investigation or providing misleading information. Individuals may likewise face significant fines from the CMA for substantive or procedural consumer law breaches, under the new regime.

Angelique Bret, Partner and competition law specialist at Pinsent Masons