Supermarkets have not been clearly displaying prices, making it more difficult for hard-pressed shoppers to find the cheapest products, the competition watchdog said.
The Competition and Markets Authority (CMA) has ordered grocers to ensure they are complying with rules requiring them to display a so-called unit price, for example how much milk costs in pence per litre.
The CMA is also calling on the government to tighten the rules around how shops display prices.
It comes after figures showed grocery prices jumped 14.9 per cent in the past year, adding to the pressure on household budgets.
The CMA launched a review into competition in the grocery sector to ensure customers were not being ripped off by big supermarkets. It focused primarily on the major grocers Asda, Morrisons, Sainsbury’s and Tesco as well as discounters, including Aldi and Lidl.
But the review found profits in the sector fell by 41.5 per cent in 2022-23, compared with a year earlier, while overall margins also shrank. The CMA said this was due to retailers absorbing some of the shock of spiralling inflation they have seen.
And in welcome news to shoppers, the watchdog said it will keep an eye on grocers looking to boost their profit margins as inflationary pressures start to ease.
But the CMA’s review found that inconsistencies in how prices are displayed meant “shoppers may be finding it hard to spot and compare the best deals”.
And it called on all grocers to give shoppers the information they need to make “meaningful comparisons” between products.
CMA boss Sarah Cardell said: “With so many people struggling to feed their families, it’s vital that we do everything we can to make sure people find the best prices easily.
“We’ve found that not all retailers are displaying prices as clearly as they should, which could be hampering people’s ability to compare product prices.
“We’re writing to these retailers and warning them to make the necessary changes or risk facing enforcement action.
“The law itself needs to be tightened here, so we are also calling on the government to bring in reforms.”
