Asda to revise pricing to comply with Competition and Markets Authority

27 April 2016 (Last Updated April 27th, 2016 18:30)

UK supermarket chain Asda has agreed to change its promotions after being singled out in a Competition and Markets Authority (CMA) investigation into misleading pricing tactics.

ASDA

UK supermarket chain Asda has agreed to change its promotions after being singled out in a Competition and Markets Authority (CMA) investigation into misleading pricing tactics.

While all major grocers had agreed to amend their pricing, the regulator had particularly asked Asda to provide a written assurance to industry guidelines.

CMA enforcement executive director Michael Grenfell said: "The CMA's examination of the market, following the super-complaint, found that supermarkets generally take compliance seriously, but there were some promotional practices that could mislead shoppers.

"We welcome the commitment we have received from Asda, as well as the engagement from other supermarkets, and expect them all to ensure that their practices are not misleading and that shoppers are better informed and able to choose the products that most suit their needs."

"It's important that customers know that the CMA did not make any findings against Asda."

The revised rules will ensure that the 'now' prices will not be advertised for longer than the 'was' price applied, ensuring they are a meaningful comparison; multi-buy offers will represent better value than a single product before the offer; multi-buy offers will not be immediately followed by 'was/now' promotions, so that it will be easier for shoppers to tell what is a good offer.

Asda spokesperson was quoted by BBC as saying: "All supermarkets were asked to review their pricing practices and make any necessary changes. The CMA has asked for a commitment from Asda on our promotional pricing rules and we were happy to provide this.

"It's important that customers know that the CMA did not make any findings against Asda, and it hasn't questioned our commitment to everyday low prices."


Image: A smaller, older Asda Superstore in Holt Park, Leeds. Photo: courtesy of Mtaylor848(talk) via Wikipedia.