The Competition and Markets Authority has launched an investigation into loyalty pricing by supermarkets following accusations that the grocers were make savings appear better than they are.
The watchdog said the investigation will explore whether exclusive member pricing like Sainsbury’s Nectar Prices and Tesco’s Clubcard Prices were “misleading” shoppers.
The probe, which will last until July, will consider whether loyalty prices offered by supermarkets are “genuine promotions” and “as good a deal as presented”.
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The CMA said it would also look to see if any groups of shoppers are disadvantaged by promotional activity and whether loyalty pricing is impacting consumer behaviour, and whether this has an impact on how supermarkets compete with each other.
Sainsbury’s CEO Simon Roberts defended the grocery chain’s loyalty scheme earlier this month following accusations from MPs and some consumer groups.
Roberts said: “We have very clear rules about what a price is, what it is before it comes down to being a Nectar Price, and we’re very consistent about how we do that.”
The CMA’s latest investigation forms part its programme of work to help tackle cost-of-living pressures.
It follows two major reports by the watchdog last year on competition in the market, which cleared supermarkets of profiteering off the cost-of-living crisis.
The CMA said the grocers are not responsible for driving up food inflation and that despite sky high food prices, competition issues had not been the factor behind this.
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