Tesco Clubcard under fire: Supermarket reported to regulator amid allegations offers lack transparency
A consumer group has reported Tesco to the competition regulator as officials continue their inquiry into whether the grocery sector is ripping off shoppers.
Which? said it had gone to the Competition and Markets Authority (CMA) to complain about a lack of clear pricing on the “vast majority” of the retailer’s food and drink promotions amid the cost of living crisis.
It claimed the UK’s largest supermarket chain could be breaking the law. Tesco has strenuously denied that suggestion.
Concerns centre on the retailer’s use of so-called unit pricing both in-store and online.
This is the small print on shelf prices which, for example, gives a price per 100g on things like jam – or per sheet for toilet rolls.
These unit prices help shoppers compare prices for the same products, which could be larger or smaller, to work out which is cheaper.
Which? wants Tesco to give unit prices on its Clubcard offers, as Sainsbury’s does under the Nectar Prices scheme. Pic: Which?
‘Tesco stands out’
Which? accuses Tesco of a lack of transparency and says that is making life more difficult for hard-pressed customers.
It said that Tesco’s decision not to display unit pricing on its Clubcard offers could be a “misleading practice” under the Consumer Protection From Unfair Trading Regulations 2008 (CPRs).
A statement added: “Under the CPRs, retailers must also avoid ‘unfair commercial practices’.
“Which? believes under these rules unit prices could be seen as ‘material information’ which most people would need in order to make an informed decision about how to get the best value from what they are buying.
“Which? has found issues with unit pricing across all supermarkets but Tesco stands out as it consistently omits unit pricing from Clubcard offers, which now account for almost all promotions it offers on groceries.”
Read more:
Are businesses making inflation worse?
There’s no evidence supermarkets are profiteering
Out of these two ketchup bottles on sale at Tesco, the smaller one under a Clubcard price is not the cheapest option per unit. Pic: Which?
Is ‘greedflation’ keeping prices high?
The group raised the complaint as the CMA investigates whether supermarkets are making excess profits through inflated prices.
The supermarket sector has denied fuelling so-called “greedflation” – while early work by Sky News on the issue suggested there was little evidence of profiteering during the first quarter of the year.
Nevertheless, food inflation has been the sticky element of the main Consumer Prices Index (CPI) measure this year, keeping the rate at a higher level than had been expected and intensifying the squeeze on household budgets.
The latest reading for food and non-alcoholic drink inflation by the Office for National Statistics (ONS) showed it was still running above 19% during the year to April.
The government is desperate to bring food inflation down as it works towards a voter pledge to halve the overall rate of inflation this year.
Ministers are considering the idea of a cap, while bringing pressure on the wider food industry to act.
The sector argues that taxpayer aid for the supply chain’s energy costs will help ease prices significantly.
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Government looks at food price cap
Tesco rejects accusation of ‘confusing’ labelling
Tesco, which is due to update the City on its trading performance in a week’s time, told Sky News it had followed all statutory guidance on the unit price issue.
A spokesperson said: “Providing great value and clear pricing is really important to us. We always take care to ensure we are compliant which is why we asked Trading Standards to review our approach on Clubcard Prices.
“They formally endorsed our labelling, confirming it meets the current legal requirements and guidelines.
“We are supportive of calls for greater clarity on the regulations in this area, in the interests of both businesses and consumers, and are actively looking at how we can make the way we display pricing even clearer for our customers.
“However, given that we are complying with all the current rules, we are disappointed that Which? has chosen to make these ill-founded claims against our Clubcard Prices scheme, which helps millions of households get great value week-in, week-out, and could save shoppers up to £351 per year.”
But Which? head of food policy Sue Davies said: “Tesco’s unclear Clubcard pricing is at best confusing for shoppers struggling with soaring food inflation and at worst, could be breaking the law.
“This is simply not good enough from the UK’s biggest supermarket.
“Tesco should think of its customers and act now to introduce clear unit pricing on all offers, including Clubcard promotions, so shoppers can easily find the best value items.”
A CMA spokesperson responded: “Our current review of unit pricing is considering the issue of how supermarkets provide unit price information for products on promotions, including loyalty promotions.
“We will set out our findings in July.”
The dates for Donald Trump’s state visit to the UK have been announced, with the US president due to be welcomed by the King from 17 to 19 September.
Buckingham Palace also confirmed that President Trump and first lady Melania will be hosted by the King and Queen at Windsor Castle.
It was expected that the three-day state visit would take place in September after Mr Trump let slip earlier in April that he believed that was when his second “fest” was being planned for.
Windsor was also anticipated to be the location after the US president told reporters in the Oval Office that the letter from the King said Windsor would be the setting. Refurbishment works at Buckingham Palace also meant that Windsor was used last week for French President Emmanuel Macron’s visit.
This will be Mr Trump’s second state visit to the UK, an unprecedented gesture towards an American leader, having previously been invited to Buckingham Palace in 2019.
Donald Trump and Melania Trump posing with Charles and Camilla in 2019. Pic: Reuters
He has also been to Windsor Castle before, in 2018, but despite the considerable military pageantry of the day, and some confusion around inspecting the guard, it was simply for tea with Queen Elizabeth II.
Further details of what will happen during the three-day visit in September will be announced in due course.
On Friday, Sky News revealed it is now unlikely that the US president will address parliament, usually an honour given to visiting heads of state as part of their visit. Some MPs had raised significant concerns about him being given the privilege.
But the House of Commons will not be sitting at the time of Mr Trump’s visit as it will rise for party conference season on the 16 September, meaning the president will not be able to speak in parliament as President Macron did during his state visit this week. However, the House of Lords will be sitting.
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Labour MP: ‘Trump isn’t welcome here’
In February this year, Prime Minister Sir Keir Starmer presented the US president with the letter from the King inviting him to visit during a meeting at the White House.
After reading it, Mr Trump said it was a “great, great honour”, adding “and that says at Windsor – that’s really something”.
In February, Sir Keir Starmer revealed a letter from the King inviting Donald Trump to the UK. Pic: Reuters
In the letter, the King suggested they might meet at Balmoral or Dumfries House in Scotland first before the much grander state visit. However, it is understood that, although all options were explored, complexities in both the King and Mr Trump’s diaries meant it wasn’t possible.
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Is the UK ready for a ‘Trump-fest’?
Elton and Jagger at royal banquet
King and Trump won’t hold private meeting
This week, it emerged that Police Scotland are planning for a summer visit from the US president, which is likely to see him visit one or both of his golf clubs in Aberdeenshire and Ayrshire, and require substantial policing resources and probably units to be called in from elsewhere in the UK.
Precedent for second-term US presidents, who have already made a state visit, is usually tea or lunch with the monarch at Windsor Castle, as was the case for George W Bush and Barack Obama.
A small plane has crashed at Southend Airport in Essex.
Essex Police said it was at the scene of a “serious incident”.
Images posted online showed huge flames and a large cloud of black smoke, with one witness saying they saw a “fireball”.
A police statement said: “We were alerted shortly before 4pm to reports of a collision involving one 12-metre plane.
“We are working with all emergency services at the scene now and that work will be ongoing for several hours.
“We would please ask the public to avoid this area where possible while this work continues.”
A huge fireball near the airport. Pic: Ben G
It has been reported that the plane involved in the incident is a Beech B200 Super King Air.
According to flight-tracking service Flightradar, it took off at 3.48pm and was bound for Lelystad, a city in the Netherlands.
One man, who was at Southend Airport with his family around the time of the incident, said the aircraft “crashed headfirst into the ground”.
John Johnson said: “About three or four seconds after taking off, it started to bank heavily to its left, and then within a few seconds of that happening, it more or less inverted and crashed.
“There was a big fireball. Obviously, everybody was in shock in terms of witnessing it. All the kids saw it and the families saw it.”
Mr Johnson added that he phoned 999 to report the crash.
Southend Airport said the incident involved “a general aviation aircraft”.
Four flights scheduled to take off from Southend this afternoon were cancelled, according to its website.
Flightradar data shows two planes that had been due to land at Southend were diverted to nearby airports London Gatwick and London Stansted.
Plumes of black smoke. Pic: UKNIP
Essex County Fire and Rescue Service said four crews, along with off-road vehicles, have attended the scene.
Four ambulances and four hazardous area response team vehicles are also at the airport, as well as an air ambulance, the East of England Ambulance Service said.
Its statement described the incident as “still developing”.
Fire engines at the airport
David Burton-Sampson, the MP for Southend West and Leigh, posted on social media: “I am aware of an incident at Southend Airport. Please keep away and allow the emergency services to do their work.
“My thoughts are with everyone involved.”
Local councillor Matt Dent said on X: “At present all I know is that a small plane has crashed at the airport. My thoughts are with all those involved, and with the emergency services currently responding to the incident.”
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UK
Heidi Alexander says ‘fairness’ will be government’s ‘guiding principle’ when it comes to taxes at next budget
Another hint that tax rises are coming in this autumn’s budget has been given by a senior minister.
Speaking to Sunday Morning with Trevor Phillips, Transport Secretary Heidi Alexander was asked if Sir Keir Starmer and the rest of the cabinet had discussed hiking taxes in the wake of the government’s failed welfare reforms, which were shot down by their own MPs.
Trevor Phillips asked specifically if tax rises were discussed among the cabinet last week – including on an away day on Friday.
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Tax increases were not discussed “directly”, Ms Alexander said, but ministers were “cognisant” of the challenges facing them.
Asked what this means, Ms Alexander added: “I think your viewers would be surprised if we didn’t recognise that at the budget, the chancellor will need to look at the OBR forecast that is given to her and will make decisions in line with the fiscal rules that she has set out.
“We made a commitment in our manifesto not to be putting up taxes on people on modest incomes, working people. We have stuck to that.”
Ms Alexander said she wouldn’t comment directly on taxes and the budget at this point, adding: “So, the chancellor will set her budget. I’m not going to sit in a TV studio today and speculate on what the contents of that budget might be.
“When it comes to taxation, fairness is going to be our guiding principle.”
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Afterwards, shadow home secretary Chris Philp told Phillips: “That sounds to me like a barely disguised reference to tax rises coming in the autumn.”
He then went on to repeat the Conservative attack lines that Labour are “crashing the economy”.
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Chris Philp also criticsed the government’s migration deal with France
Mr Philp then attacked the prime minister as “weak” for being unable to get his welfare reforms through the Commons.
Discussions about potential tax rises have come to the fore after the government had to gut its welfare reforms.
Sir Keir had wanted to change Personal Independence Payments (PIP), but a large Labour rebellion forced him to axe the changes.
With the savings from these proposed changes – around £5bn – already worked into the government’s sums, they will now need to find the money somewhere else.
The general belief is that this will take the form of tax rises, rather than spending cuts, with more money needed for military spending commitments, as well as other areas of priority for the government, such as the NHS.
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