CMA Investigates Tesco Over Misleading Clubcard 'Savings' Claims

The Competition and Markets Authority (CMA) opened an investigation into Tesco's Clubcard pricing practices following consumer complaints and media investigations suggesting that the UK's largest supermarket may be creating a misleading impression of savings.

Tesco's Clubcard scheme offers lower prices to loyalty card holders, with shelf labels showing both the "regular" price and the lower "Clubcard price." Consumer groups alleged that Tesco had been inflating the regular prices to make the Clubcard savings appear more generous, and that the "regular" prices were not genuine reference prices.

For example, a product might be shown with a "regular" price of £3.50 and a Clubcard price of £2.00, suggesting a saving of £1.50. But if the product had historically been sold at £2.50 or was available elsewhere for £2.00, the £3.50 "regular" price was artificially inflated and the "saving" was misleading.

This practice affects millions of UK shoppers and raises fundamental questions about loyalty scheme pricing across the retail sector. Consumer groups argued that such practices particularly disadvantage vulnerable consumers who may not have smartphones to use digital loyalty cards or may not understand the pricing mechanics.

Similar concerns have been raised about loyalty pricing at other major UK supermarkets including Sainsbury's and Boots.