There was a clear distinction between the evidence provided by the regulatory officers and that of the supermarkets Supermarket pricing In this feature l super-complaint l misleading offers l compliance Credits Sue Powell is primary authority officer for Oxfordshire Trading Standards Service, and Helen Buckingham is assistant director of the Better Regulation Delivery Office. Images: elenabsl / Shutterstock To share this page, click on in the toolbar You might also like The shady world of illegal colours – December 2015 Pricing is a particularly difficult area that throws up problems for everyone involved in the grocery sector – and, earlier this year, consumer champion Which? launched a super-complaint against perceived unfair practices by supermarkets. As part of the Competition and Markets Authority’s (CMA) investigation, expert panel the Primary Authority Supermarkets Group (PASG) was asked to give evidence about supermarket pricing. The PASG combines primary authority officers – who are regulators from local authorities – with their supermarket partners, which has made it a particularly effective force in bringing clarity to this complex issue. In its complaint, Which? raised three main areas for further investigation by the CMA. They were: l Confusing and misleading special offers l Unit pricing done in such a way that prices are not easily comparable l Pack sizes shrinking without a corresponding price reduction As part of its complaint, the consumer group asked the CMA to look at the impact of price-matching schemes that may falsely lead consumers to believe they have the best deal. The CMA asked each primary authority officer on PASG to furnish information on their partnership. This included details of any advice given to their supermarket partner on pricing and other areas covered in the super-complaint, plus information on complaints and referrals received about pricing. The feedback requested in these letters to the primary authority officers was different from that requested from the supermarkets – and the responses from the officers were sent separately from those of the retailers. Reduce complexity There was a clear distinction between the evidence provided by the regulatory officers and that of the supermarkets. The CMA – in its response to the Which? super-complaint of 16 July – concluded that, generally, retailers were taking compliance seriously, and had a good awareness of key consumer protection legislation and guidance. However, it also concluded that more could be done to reduce the complexity of unit pricing – to make it a more useful comparison tool for consumers – and that some promotional practices could mislead or confuse consumers, leading to a potential breach of consumer law. It also recommended further action to clarify the guidance that applies to pricing practices. Most of the supermarkets represented on PASG signed up to the Office of Fair Trading’s (OFT’s) Pricing Principles in November 2012. The aim of this was to give some clarity on how food prices were displayed and on pricing promotions. Best-practice principles The supermarkets were all involved in meeting with the OFT to give evidence and feedback on the suggested approach. The resulting principles give examples of best practice that will assist in demonstrating compliance with the Consumer Protection from Unfair Trading Regulations 2008. Not all the supermarkets signed up to these principles and, while helpful, they are limited in their application to a handful of retailers – and only in relation to food pricing. Other retailers are, however, free to adopt the principles and use them for non-food products. The principles were also intended to offer additional guidance to that offered in the Pricing Practices Guide, which has been re-issued in draft for consultation by CTSI, with any comments requested by 6 January 2016. PASG has had a representative on the Department for Business, Innovation and Skills’ (BIS’) Expert Working Group looking at unit pricing, to give a regulatory perspective and to offer feedback on the experiences of primary authority officers around referrals in this area. The CMA report highlighted areas relating to the use, legibility and consistency of unit pricing. It is generally acknowledged by the Expert Working Group that Schedule 1 of the Price Marking Order 2004 may be the source of more confusion than clarification, because of the number of categories listed in the schedule and their limitations. Research suggests that the Price Marking Order 2004 has a more complex schedule in relation to the relevant units of quantity for specified products than most other European countries. Ensuring consistency for consumers BIS is considering how this can be addressed and whether changes are needed to Schedule 1 to clarify the units, which should be used for specific food products to make unit pricing easier for retailers, and to ensure consistency for consumers. Officers from PASG will continue to meet with organisations involved in looking at the issues around pricing, to give an independent view based on the information received from complaints and referrals, and from the supermarkets’ partners. PASG’s main focus is to ensure regulatory compliance within the functional areas covered by trading standards. This includes fair trading, improving compliance, consistency, consumer confidence and helping create a level playing field. Commitment among the supermarket partners on PASG to meeting the requirements of the legislation on pricing is strong. It is hoped that the revised Pricing Practices Guide – and any changes to the relevant legislation – will improve compliance further through greater clarity and simplification for retailers. It should also provide a greater understanding of pricing and promotional activities for consumers, to aid them in their purchasing decisions. PASG meets four times a year, with a separate sitting solely for the regulatory officers and a combined meeting with the supermarket representatives, to which external speakers are invited. The group also has links with a number of expert panels, as well as with national organisations and government departments. Anyone involved in the supermarkets sector who wishes to contact PASG to add items to its agenda can email the group. After criticism from Which? of pricing practices in supermarkets last year, Sue Powell and Helen Buckingham clarify the investigation’s findings PASG at a glance The Primary Authority Supermarkets Group (PASG) is one of a number of expert panels supported by the Better Regulation Delivery Office to give high-level regulatory advice and insight to regulators and business leaders in various commercial sectors. PASG is independent and exists to offer clarity and insight in many complex areas, from food standards to weights and measures. PA probe sheds light on food prices and promotions The Pricing Practices Guide has been re-issued in draft for consultation by CTSI, with comments requested by 6 January 2016.