With supermarkets increasingly introducing two tier pricing for certain products, with some cheaper prices only available for loyalty card members, the Competition and Markets Authority (CMA) announced that it would begin a review of loyalty pricing by supermarkets in January 2024.  This follows concerns expressed by Which?.

It has now confirmed that its review has begun.  It is part of a programme of work by the CMA to help tackle cost of living pressures in the groceries sector.

The review will consider issues such as:

• whether any aspects of loyalty pricing could mislead shoppers, for example whether the loyalty price is a genuine promotion or as good a deal as presented;
• whether any groups of shoppers are disadvantaged by this type of promotional activity;
• whether loyalty pricing is affecting consumer behaviour; and
• if this has an impact on how supermarkets compete with each other.

The review is at an early stage and the CMA says that it has not formed any views on the issues. It is starting engaging with the supermarkets. It intends to publish an update on its work in July 2024, and expects to complete the review by the end of the year.

The CMA has also published research on unit pricing, which will feed into the review of the Price Marking Order being taken forward by the recently announced amendments to the DMCC Bill.